Which of the following would be most likely to shift the consumption function downward?
a. a stock market crash
b. a price level decrease
c. increased corporate profits
d. a stock market boom
a
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As the number of days without rain increases, the amount of wheat grown per acre declines. A graph showing this relationship shows
A) a vertical line. B) a positive relationshi
Which of the following is true of a Nash equilibrium?
A) A game can have only one Nash equilibrium. B) No player can improve his payoff by changing his strategy once in Nash equilibrium. C) A Nash equilibrium cannot occur if each player is aware of the strategies of other players. D) A Nash equilibrium occurs if each player earns a zero payoff irrespective of the strategy he chooses.
Assume the required reserve ratio is 10 percent and the FOMC orders an open-market sale of $50 million in government securities from member banks. If the oversimplified money multiplier is assumed, then the money supply will
A. increase by $500 million. B. increase by $100 million. C. decrease by $100 million. D. decrease by $500 million.
In the new Keynesian model, a positive, permanent supply shock will result in ________
A) an increase in aggregate demand B) a decrease in aggregate demand C) no change in aggregate demand D) a change in aggregate demand, only if the shock is anticipated