Changes in prices of a good causes
a. Movement along the demand curve
b. Movement along the supply curve
c. No effect to either curve
d. Both a and b
d
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At the midpoint of a linear demand curve, the price elasticity of demand is:
A) equal to zero. B) between zero and one. C) equal to one. D) greater than one.
Evidence shows that flexible exchange rates have created a destabilizing speculation in the foreign exchange market
Indicate whether the statement is true or false
Which of the following will not increase aggregate expenditures?
a. A decrease in domestic prices b. A decrease in the interest rate c. An increase in real wealth d. An increase in income taxes e. An increase in autonomous net exports
A study of countries with high inflation rates indicates that the inflation is generally
a. caused by strong labor unions. b. the result of restrictive macroeconomic policy, which pushes up interest rates. c. caused by supply shocks. d. the result of rapid growth in the money supply.