If P1 is a price ceiling, the highest price for good Y, which is tied (a tie-in sale) to good X, is
A. P1.
B. P2.
C. P3.
D. P3 – P1.
E. P1 + P2.
Answer: D. P3 – P1.
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If the investment curve is relatively vertical, the Keynesian conclusion is that the transmission mechanism has little effect on the economy
a. True b. False Indicate whether the statement is true or false
If the reserve ratio is 4 percent, then the money multiplier is
a. 24. b. 25. c. 26. d. 4.
Refer to the graph shown. If the monopoly firm maximizes profit, it will produce:
A. 25 units of output and producer surplus will be $15.625. B. 30 units of output and producer surplus will be $60. C. 15 units of output and producer surplus will be $16.875. D. 15 units of output and producer surplus will be $28.125.
The supply of loanable funds slopes upward to the ______________________.
Fill in the blank(s) with the appropriate word(s).