See the information in Scenario 4.4. Suppose that the price should increase slightly from $10, how will this affect the total expenditure of consumers on the game?
A) Total expenditures will increase.
B) Total expenditures will not change.
C) Total expenditures will decrease by a larger percentage than the price increase.
D) Total expenditures will decrease by a smaller percentage than the price increase.
E) either C or D could be true.
A
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The price of a smartphone increased from $350 to $400 while the price of a smartphone app increased from $1 to $2. The relative price of smartphones in terms of smartphone apps
A) increased from 200 to 350. B) decreased from 350 to 200. C) increased from 0.003 to 0.05. D) decreased from 0.35 to 0.2.
Explain why a balanced budget has an expansionary effect on the economy
Suppose a country has a larger increase in debt in 2014 than it had in 2013 . Then other things the same,
a. the supply of loanable funds shifts rightward and the interest rate falls. b. the supply of loanable funds shifts leftward and the interest rate rises. c. the demand for loanable funds shifts leftward and the interest rate falls. d. the demand for loanable funds shifts rightward and the interest rate rises.
The monetary base is the sum of:
A. currency in the hands of the public, reserves and M1. B. currency in the hands of the public and reserves in the banking system. C. M1 and reserves. D. reserves and M2.