Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. If the price of caviar falls from $45 to $35, the market quantity demanded would
A) increase by 50 oz. B) decrease by 50 oz. C) decrease by 70 oz. D) increase by 70 oz.
D
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The demand for Honda Accords is probably
A) inelastic but more elastic than the demand for automobiles. B) elastic and more elastic than the demand for automobiles. C) inelastic and less elastic than the demand for automobiles. D) elastic but less elastic than the demand for automobiles.
When interest rates rise, the quantity demanded of money held for the:
a. speculative motive rises. b. precautionary motive rises. c. transactions motive falls. d. precautionary motive falls. e. speculative motive falls.
If actual inflation differs from expected inflation, what is the slope of the Phillips curve?
a. It is horizontal in the short and long run. b. It is upward sloping in the short run and vertical in the long run. c. It is vertical in the short run and upward sloping in the long run. d. It is downward sloping in the short run and vertical in the long run.
Why might the Fed decide to monetize the deficit?
A. To keep inflation low B. To reduce the structural deficit C. To reduce the budget deficit D. To keep interest rates low