In the monetary small open-economy model with a fixed exchange rate, an increase in the foreign price level
A) increases the domestic money supply and increases the domestic price level.
B) increases the domestic money supply and decreases the domestic price level.
C) decreases the domestic money supply and increases the domestic price level.
D) decreases the domestic money supply and decreases the domestic price level.
A
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In the United States, the Federal Deposit Insurance Corporation (FDIC) usually insures the value of deposits up to
A) $50,000. B) $100,000. C) $500,000. D) $1,000,000.
The formula for calculating the cross price elasticity of demand is: a. the change in the quantity demanded of one good divided by the change in the price of another good
b. the percentage change in demand of one good divided by the percentage change in the price of another good. c. the percentage change in the quantity supplied of one good divided by the percentage change in the price of another good. d. the percentage change in the price of one good divided by the percentage change in the quantity demanded of another good.
The aggregate demand curve would shift to the right as a result of
A. a decrease in the U.S. real interest rate. B. a decrease in the amount of money in circulation. C. a drop in the price level. D. tax increases.
Refer to the information provided in Figure 6.4 below to answer the question(s) that follow.
Figure 6.4Refer to Figure 6.4. Bill's budget constraint is AC. If the black bean price decreases, Bill's budget constraint will
A. remain at AC. B. swivel toward AO. C. swivel toward AB. D. swivel toward AD.