According to Keynes' theory of money demand, a low interest rate increases the likelihood of a capital ________ and ______ the interest elasticity of money demand
a. gain on bonds; reduces.
b. gain on money; increases.
c. loss on bonds; reduces.
d. loss on money; increases.
e. none of the above.
C
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If the demand for a good is extremely inelastic, a large increase in the cost of supplying it will
A) raise its price substantially and increase the total dollars spent to purchase it. B) raise its price substantially but decrease the total dollars spent to purchase it. C) raise its price very little and decrease the total dollars spent to purchase it. D) raise its price very little but increase the total dollars spent to purchase it.
Assume a consumer has a horizontal demand curve for a product. His consumer surplus from buying the product
A) is maximized. B) can't be calculated. C) equals zero. D) Need more information.
Using dollar values to calculate GDP is advantageous because
a. people can most easily understand dollar amounts b. it employs a common unit of measurement for very different things c. less valuable goods count the same as more valuable goods d. other methods of calculating production are not as intuitively clear e. money is a universal yardstick for measurement
In the United States, most often the ________ changes first, and the ________ follows.
A. GDP deflator; CPI B. PPI; CPI C. PCE; CPI D. CPI; PPI