An expected reduction in the money supply will tend to cause
A) an increase in stock prices.
B) a reduction in stock prices.
C) no change in stock prices.
D) an ambiguous effect on stock prices.
C
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The range to the left of the midpoint on a linear demand curve is
A) elastic. B) infinite. C) one. D) inelastic.
Whether a cross-price elasticity of demand is positive or negative indicates whether the:
A. goods are substitutes or complements. B. elasticity is reported in absolute value. C. good's demand is elastic or inelastic. D. good is a luxury or a necessity.
If national real GDP grows at twice the rate of population growth,
A. real per capita GDP growth will double each year. B. eventually there will be too much GDP. C. real per capita GDP will double each year. D. real per capita GDP will be reduced by half each year.
State four factors that explain why investment spending tends to be unstable.
What will be an ideal response?