An increase in demand will increase the quantity sold but not the price in a market if:
a. supply is perfectly elastic
b. supply is perfectly inelastic
c. supply is relatively elastic
d. supply is relatively inelastic
a
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The Fed can exert more precise control over ________ than it can over ________
A) high-powered money; reserves B) high-powered money; the monetary base C) the monetary base; high-powered money D) reserves; high-powered money
Keynesian economists argue that monetary policy works through its effects on:
a. interest rates and investment. b. price- and wage-flexibility. c. budget deficits and trade deficits. d. the spending and money multipliers.
Over the last 100 years or so, the U.S. economy has grown annually at an average rate of:
A. 1 %. B. 3 %. C. 4 %. D. 2 %.
Which of the following do the marginal propensity to consume and the marginal propensity to save have in common?
a. They contradict Keynes’s original model. b. They apply only to certain household consumers. c. It is impossible for either to be zero. d. They both require change in disposable income to calculate.