If people begin to hold more cash, the money-multiplier process will

A. increase in intensity.
B. remain the same.
C. decrease in actual size.
D. cause larger amounts of excess reserves.


Answer: C

Economics

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When supply is perfectly elastic, the value of the price elasticity of supply is

a. 0. b. 1. c. greater than 0 and less than 1. d. infinity.

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Most, but not all, athletic apparel sold in the United States is imported from other nations. If the price of athletic apparel increases, the GDP deflator will

a. increase less than will the consumer price index. b. increase more than will the consumer price index. c. not increase, but the consumer price index will increase. d. increase, but the consumer price index will not increase.

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Monthly expenditures for a family of 4 in 2017 averaged $1,400. In 2018, the cost of the same purchases was $1,500. If 2017 is the base year, what was the CPI in 2018?

A) 110 B) 107 C) 100 D) 93

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The basic aggregate demand and aggregate supply curve model helps explain ________ fluctuations in real GDP and the price level

A) long-term B) unrelated C) both short-term and long-term D) short-term

Economics