The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to fall.
b. M2 money supply to fall.
c. M2 money multiplier to fall.
d. Monetary base to remain the same.
.D
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Suppose that when the price of strawberries decreases, Simone increases her purchase of whipped cream. To Simone
A) strawberries and whipped cream are normal goods. B) strawberries and whipped cream are complements. C) strawberries are a normal good and whipped cream is an inferior good. D) strawberries and whipped cream and substitutes.
Which of the following describes the Volcker disinflation most accurately?
a. Almost all of the public believed that the Fed would keep money growth low, so unemployment rose less than it would have otherwise. b. Almost all of the public believed that the Fed would keep money growth low, so unemployment rose more than it would have otherwise. c. Much of the public did not believe that the Fed would keep money growth low, so unemployment rose less than it would have otherwise. d. Much of the public did not believe that the Fed would keep money growth low, so unemployment rose more than it would have otherwise.
Explain the difference between productive efficiency and allocative efficiency. How do these efficiencies relate to monopolistic competition?
What will be an ideal response?
A 3% increase in the price of tea causes a 6% increase in the quantity demanded of coffee. The cross-price elasticity of demand between coffee and tea is
A. -2.0. B. -0.5. C. 0.5. D. 2.0.