If the price elasticity of supply of corn is 3.12, then is the supply of corn elastic or inelastic?
What will be an ideal response?
Because the price elasticity of supply exceeds one, the supply of corn is elastic.
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The spending multiplier is defined as:
a. the ratio of the change in equilibrium output to the initial change in spending. b. the change in initial spending divided by the change in personal income. c. 1 / (marginal propensity to consume). d. 1 / (1 ? marginal propensity to save).
If the United States experiences an economic boom, compared to other countries, how will this affect the value of the U.S. dollar?
a. It will fall because other nations would be forced to raise their interest rates. b. It will fall because the United States will import more goods and services, leading to an increased supply of dollars. c. It will rise because U.S. GDP would be rising faster than other countries. d. It will rise because the Fed will have to lower U.S. interest rates.
If banks demand currency (e.g., Federal Reserve Notes) from the central bank, the effect is to:
a. Increase the nation's monetary base. b. Decrease the nation's monetary base. c. Leave the monetary base unchanged. d. Increase the liabilities of the central bank. e. None of the above is true.
Gorbachev's reforms were called
a. loans for shares b. de-democratization c. the Liberman reform d. perestroika e. none of the above