In a model with money neutrality, a 10% increase in the money supply leads to an increase of prices by
A) more than 10%.
B) 10%.
C) less than 10%, but more than zero.
D) zero.
B
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Refer to Figure 9.9. At free trade, domestic producer surplus would be
A) $2,500. B) $50,000. C) $1,250,000. D) $2,500,000. E) $20,000,000.
Statistical discrimination
a. arises from employer prejudice b. arises from consumer prejudice c. does not involve prejudice by employers or consumers d. is illegal in the United States e. tends to reduce the profits of profit-maximizing firms
The market demand curve shows the relationship between the price and the quantity demanded by all consumers, everything else being equal.
Answer the following statement true (T) or false (F)
Refer to the graph shown. With an effective price floor at Pf, total surplus is reduced by:
A. rectangles B and C. B. triangles E and F. C. rectangles A and D. D. rectangle B and triangle E.