If the absolute price elasticity of demand for good Y is 0.5, when there is a 20 percent increase in price, we can conclude that quantity demanded
A) has fallen by 100 percent.
B) has fallen by 1 percent.
C) has fallen by 10 percent.
D) has fallen by 4 percent.
C
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Which of the following is a role of the Federal Deposit Insurance Corporation in the United States?
A) It determines the monetary policy of the country. B) It monitors the money supply. C) It controls the real rate of interest. D) It regulates banks that are insolvent.
Suppose demand decreases and supply decreases. Which of the following will happen?
a. equilibrium price will increase b. equilibrium price will decrease c. equilibrium quantity will increase d. equilibrium quantity will decrease e. neither the equilibrium price nor the quantity will change
Firm A’s motive in filing an antitrust suit against Firm B may be to
A. create an expensive nuisance for Firm B. B. allow Firm A to acquire Firm B. C. gain an exclusive supply contract from Firm B. D. expose Firm B’s cheating on their cartel agreement.
Economist Jones favors a constant-money-growth-rate rule. She says that if the annual money supply growth rate each year is equal to the average annual growth rate in Real GDP, price stability will exist over time. What would economist Smith, who favors activist monetary policy, say to economist Jones?
A) Your analysis assumes that Real GDP is constant over time, and it is not. B) Your analysis assumes that velocity is constant, and it is not. C) Your analysis assumes that you can correctly define the money supply. D) b and c E) a, b and c