If demand is ________ with respect to price, a price increase will ________ total revenue.
A. inelastic; decrease
B. unit elastic; decrease
C. inelastic; increase
D. elastic; increase
Answer: C
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The study of exchange rate determination is a relatively new part of international economics, since
A) for much of the past century, exchange rates were fixed by government action. B) the calculations required for this were not possible before modern computers became available. C) economic theory developed by David Hume demonstrated that real exchange rates remain fixed over time. D) dynamic overshooting asset pricing models are a recent theoretical development. E) the exchange rate never fluctuates.
Non-neutral technological change is more valuable to labor than neutral technological change
What will be an ideal response?
The "fiscal multiplier" is the ripple effect of subsequent:
A. increases in spending following an initial increase in government spending. B. increase rate changes following a change to the federal funds rate. C. increases in lending following an initial increase in bank reserves. D. private-sector layoffs following an initial layoff in the public sector.
In 2008–2009, the U.S. economy provided a
A. healthy climate for investment spending. B. change in aggregate demand that fostered more capital formation. C. sluggish climate for investment spending. D. booming economy that spurred investment spending.