Figure 3-19
Refer to . Buyers who value this good less than price are represented by which line segment?
a.
AC.
b.
CE.
c.
BC.
d.
CD.
b
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If the potential money multiplier in the U.S. is 4, then a $2,000 increase in demand deposits when banks hold excess reserves will result in which of the following?
a. the money supply will decrease by $8,000 b. the money supply will remain unchanged because the excess reserves will cancel out the potential loans c. the money supply will increase by $8,000 d. the money supply will increase by more than $8,000 e. the money supply, if it increases at all, will increase by less than $8,000
If the Fed's primary goal is price stability which macroeconomic variable should it target?
A) the price level itself or a particular rate of change in the price level B) the growth rate of money supply C) the real money supply D) real GDP
The use of a price system eliminates:
A. scarcity. B. equilibrium. C. shortages and surpluses. D. changes in supply and demand.
The trade feedback effect includes all of the following steps except
A. an increase in U.S. exports stimulates U.S. economic activity. B. an increase in U.S. economic activity stimulates U.S. imports. C. an increase in foreign income stimulates U.S. imports. D. an increase in foreign imports stimulates U.S. exports.