Monetary policy affects real GDP by.

A. Changing aggregate supply
B. Creating budget surpluses
C. Changing aggregate demand
D. Creating budget deficit


Ans: C. Changing aggregate demand

Economics

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If the consumption function is defined as C = 7,250 + 0.8Y, what is the marginal propensity to save?

A) 0.2 B) 0.8 C) 5.8 D) 7.25

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The market demand for wheat is Q = 100 - 2p + 1pb, where pb is the price of barley. If the price of wheat is $2, the price elasticity of demand

A) equals (-4/46). B) equals (-46). C) equals (-1). D) cannot be calculated without more information.

Economics

Economic growth focuses on ____________, utility focuses on ____________, and the capabilities approach focuses on __________________.

A. human development; individual pleasure; output B. output; human development, individual pleasure C. output; individual pleasure; human development D. human development, output, individual pleasure

Economics

A high-ranking corporate official of a well-known company is unexpectedly sentenced to prison for criminal activity in trading stocks. This should

a. raise the price and raise the present value of the corporation's stock. b. raise the price and lower the present value of the corporation's stock. c. lower the price and raise the present value of the corporation's stock. d. lower the price and lower the present value of the corporation's stock.

Economics