According to traditional Keynesians, when the central bank increases the money supply during a recession
A. people will refuse to use the money.
B. people will keep most of it in their bank accounts.
C. people will borrow more from banks.
D. people will spend all of the money on goods and services.
Answer: B
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However, this type of bargaining will tend to be limited when:
Mass production during U.S. industrialization involved using which of the following?
(a) Interchangeable parts (b) Division of labor and specialization (c) The assembly line (d) All of the above
With a price floor:
A. consumer surplus falls and producer surplus falls. B. consumer surplus increases and producer surplus falls. C. consumer surplus falls and producer surplus can increase or decrease. D. consumer surplus increases and producer surplus increases.
If the income elasticity of demand (YED) for a good is 0.9, then the good is:
(a) An Inferior good; (b) A Normal good; (c) A Luxury or Superior good; (d) The above information is incomplete and therefore no judgement is possible.