Any event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity
a. True
b. False
Indicate whether the statement is true or false
True
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The Ricardian Equivalence holds only if
A) the government is altruistic. B) there are no binding credit constraints. C) the government runs deficits. D) the government runs surpluses.
A key assumption of the Keynesian model of macroeconomics is a fixed _____
a. interest rate b. price level c. exchange rate d. growth rate e. unemployment level
Econville opens up trade with its neighboring countries. This causes the number of sellers of science fiction novels to increase. What happens to the equilibrium price and quantity?
a. Price and quantity both increase. b. Price decreases, and quantity increases. c. Price increases, and quantity decreases. d. Price and quantity both decrease.
Milly Miser removes $250,000 from her mattress and opens a checking account. This single transaction immediately increases the money supply by
a. $250,000. b. $50,000. c. $0. d. ?$250,000.