If economists say that a 7 percent growth in the money supply will increase aggregate demand by 7 percent, they are assuming that velocity

a. will decrease.
b. is constant.
c. will increase.
d. is unpredictable.


b

Economics

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If the current margin is greater than the desired margin,

a. MR=MC b. MR>MC c. MR

Economics

When the exchange rate falls, imports ________ and exports ________

A) increase; decrease B) increase; increase C) decrease; do not change D) decrease; decrease E) decrease; increase

Economics

According to some economists, what contributed to the unusual uncertainty that adversely affected aggregate supply during the recovery following the recession of 2007-2009?

What will be an ideal response?

Economics

The water and diamonds paradox can be explained by considering:

(a) Marginal Utility. (b) The difference between inferior and luxury goods. (c) Long run costs. (d) It cannot be explained.

Economics