Refer to the accompanying figure. For demand curve D1, what is the price elasticity of demand when P = 12?
A. 4
B. 12
C. 3
D. 6
Answer: C
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Each of the following would decrease the supply of U.S. dollars, shifting the supply curve for dollars to the left, except:
A. a decrease in U.S. real GDP. B. a depreciation of the U.S. dollar relative to other currencies. C. a decrease in the real interest rate on foreign assets. D. a decreased preference for foreign-made goods.
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
As we move downward along a demand curve for apples,
A) consumer well-being decreases. B) the marginal utility of apples decreases. C) the marginal utility of apples increases. D) Both A and B are true. E) Both A and C are true.
One of the most dramatic bank failures of the 1980s was the demise of Chicago's Continental Illinois Bank. Continental ran into problems because it
a. acquired deficient earth moving machinery from Caterpillar b. acquired a series of unsound assets from Penn Square Bank of Oklahoma City c. invested too heavily in the Brazilian economy in the 1970s d. financed deficit spending by Archer Daniels Midland e. sued the FDIC and failed