__________ will change for a number of reasons, including movements in income, taxes, expectations about future income, and changes in wealth levels.
a. Supply
b. Price levels
c. Consumption
d. Demand
c. Consumption
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If rent-seeking behavior reduces competition in a market, cooperative surplus in that market will
A) increase. B) decrease. C) remain unchanged. D) All of the above are equally likely to occur.
The money multiplier is calculated as 1 / reserve requirement multiplied by the:
A. change in excess reserves following a change in the money supply. B. change in deposits following a change in government expenditure. C. change in total reserves following a change in the money supply.
Most economists agree that fiscal policy:
A. should not be used to eliminate economic fluctuations, no matter how large or small. B. cannot be used to fine tune the economy. C. can be used to fine tune the economy. D. can be used to eliminate most if not all economic fluctuations.
If inflation turns out to be higher than was anticipated,
A) debtors are helped. B) debtors are hurt. C) debtors are neither helped nor hurt. D) The effect on debtors cannot be predicted.