If interest rates fall, the M2 money multiplier:
a. Does not change.
b. Rises because C/D and U/D rise, and N/D falls.
c. Falls because C/D and U/D fall, and N/D falls.
d. Falls because C/D, U/D, and N/D rise.
e. Falls because C/D and U/D rise, and N/D falls.
.E
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The simple circular flow model shows that workers and capital-owners offer their services to firms through the
A. product markets. B. government agencies. C. employment agencies. D. resource markets.
Which of the following is ALWAYS true when a single-price monopolist maximizes its profit?
A) P = MC B) P = MR C) MR = MC D) MC = ATC E) P > ATC
If the price of a good in a closed economy is lower than the world price, then with an open economy this country will be a ________ of that good.
A. price taker B. net importer C. net exporter D. price setter
Graphically inflation shocks shift the ________ and shocks to potential shift the ________.
A. aggregate demand curve; short-run aggregate supply line B. short-run aggregate supply line; long-run aggregate supply line C. long-run aggregate supply line; short-run aggregate supply line D. aggregate demand curve; long-run aggregate supply line