According to the quantity equation, if velocity and real GDP are constant, and the Federal Reserve increases the money supply by 5 percent, then the price level:
A. increases by 5 percent.
B. decreases by 5 percent.
C. decreases by more than 5 percent.
D. increases by more than 5 percent.
Answer: A
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D2 and S2 (point E). Which of the following changes would cause the equilibrium to change to point A?
A) a positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples B) an increase in the wages of apple workers and a decrease in the price of oranges, a substitute for apples C) an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease D) a decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples
An increase in total factor productivity shifts the PPF
A) upward, but does not change its slope. B) upward, and also changes its slope. C) downward, but does not change its slope. D) downward, and also changes its slope.
In a hostile takeover,
a. existing management of the target company opposes the takeover b. management of the buying company opposes the takeover c. the government opposes the takeover d. stockholders of the target company oppose the takeover e. bondholders of the target company oppose the takeover
An indifference curve shows
A) the combinations of goods that a consumer does not like very much. B) the combinations of goods that generate the same ratio of marginal utilities. C) the set of consumption alternatives that yield the same amount of total utility. D) the set of consumption alternatives that yield the same amount of marginal utility.