How does an increase in near term spending needs affect the supply and demand curve for money?
Answer: Increase Supply
No effect on demand
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A monopoly that price discriminates ______
A. benefits buyers because it offers the good at a variety of prices B. gains because it converts consumer surplus to economic profit C. uses resources more efficiently than would a competitive market D. enables buyers to maximize their consumer surplus
Consider an initial IS-LM equilibrium with normally-sloped curves. An increase in government spending shifts the ________ by a horizontal distance equal to the change in government spending ________
A) IS curve to the right, divided by the Chapter 3 multiplier B) IS curve to the right, times the Chapter 3 multiplier C) IS curve to the left, times the interest rate at the initial equilibrium D) LM curve to the right, divided by the Chapter 3 multiplier E) LM curve to the right, divided by the interest rate at the initial equilibrium
If Arnold has a positive rate of time preference, he desires to
a. save in case of inflation b. consume now rather than later c. invest in stocks and bonds d. invest in education e. plan for retirement
A nominal quantity is measured:
A. in terms of current dollar value. B. in physical terms. C. using the consumer price index. D. by indexing.