How well the group works together is called
a. dynamics
b. cohesiveness
c. conforming
d. norming
Ans: b. cohesiveness
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The Fed raises the interest rate when it
A) fears recession. B) wants to increase the quantity of money. C) fears inflation. D) wants to encourage bank lending. E) cannot change the quantity of money.
If it is difficult to substitute for a good in the short run, but easy in the long run, then
A) the elasticity of demand is more elastic in the short run. B) the elasticity of demand is more elastic in the long run. C) the good is an inferior good. D) elasticity changes along the demand curve.
Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause
a. both the equilibrium price and quantity to decrease. b. both the equilibrium price and quantity to increase. c. the equilibrium price to increase and the equilibrium quantity to decrease. d. the equilibrium price to decrease and the equilibrium quantity to increase.
Which of the following is true?
A. Velocity does not depend on which money supply measurement we use. B. Measuring money supply using M1 reduces fluctuations in velocity. C. Measuring money supply using M2 reduces fluctuations in velocity. D. Measuring money supply using M2 increases fluctuations in velocity.