Melanie decided to save 20% of her annual earnings for 10 years so she would have a down payment for a house. After 5 years, what change in the economy would cause an increase in the purchasing power of the funds she has managed to save?
a. recession
b. depression
c. deflation
d. stagflation
c. deflation
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Which of the following is an example of a monetary policy?
a. Feds reducing bank lending b. Government decreasing the tax rate c. Government increasing the level of technology d. Decreasing government spending
Economics is the study of
A. how people spend their income. B. why people want certain goods and services rather than other goods and services. C. how people allocate their limited resources to satisfy their unlimited wants. D. how to get rich.
Marginal revenue product is
A) marginal physical product times marginal factor cost. B) marginal physical product times marginal revenue. C) average physical product times marginal revenue. D) marginal physical product times the wage rate.
If the demand for money depends on the interest rate, then a ________ in the money supply will increase nominal GDP by ________.
A. 5% decrease; more than 5% B. 5% increase; less than 5% C. 5% decrease; exactly 5% D. 5% increase; more than 5%