When the price level goes up, the purchasing power of the dollar
A) varies directly with the value of the euro.
B) remains constant.
C) also increases.
D) falls.
Ans: D) falls.
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When the Fed increases the money supply
A) the interest rate rises and this stimulates consumption spending. B) the interest rate falls and this stimulates investment spending. C) the interest rate rises and this stimulates investment spending. D) people spend less because they have more money.
What is the real GDP in year 2 using base year 2?
A) $418. B) $300. C) $360. D) $338.
In order to avoid problems involved with calculating percentage changes over a wide range, economists use the base or midpoint formula to calculate percentage changes when measuring the price elasticity of demand
a. True b. False Indicate whether the statement is true or false
A network linking six users is typically:
A. less than three times as valuable as a network linking two users. B. three times as valuable as a network linking two users. C. less likely to exhibit bottlenecks than a network linking two users. D. more than three times as valuable as a network linking two users.