Refer to Figure 14.2. Other things equal, a decrease in inflationary expectations would best be represented by a movement from
A) point A to point B.
B) point B to point A.
C) point C to point B.
D) point B to point C.
A
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The above figure graphs the price of a bushel of wheat and housing starts. The graph shows the variables are
A) strongly positively related. B) strongly negatively related. C) not related. D) related via an indirect relationshi
Which of the following is not a consequence of hyperinflation?
A) The price level grows in excess of hundreds of percentage points per year. B) Hyperinflation causes an economy to suffer slow growth. C) Money loses value so rapidly that individuals and firms stop holding it. D) Money's function as a medium of exchange is enhanced.
Utility is
a. easily measured because all people derive the same utility from consumption b. easily measured because it is an objective concept c. easily measured because it is a subjective concept d. hard to measure because it is a subjective concept e. hard to measure because it is an objective concept
A decrease in disposable income causes a shift in the consumption function.
Answer the following statement true (T) or false (F)