In the equation of exchange, an increase in M of 8 percent could be accompanied by changes in velocity, the price level and real GDP of:
a. 0%, 4%, 4%
b. 0%, 8%, 0%.
c. 0%, 0%, 8%.
d. all of the above
d
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Assume Bryce's budget constraint is represented by line B in the graph shown. Which of the following would cause Bryce's budget constraint to shift to A?
A. The price of books increased.
B. The price of books decreased.
C. The price of movie tickets increased.
D. The price of movie tickets decreased.
Conspicuous consumption
A. was a phrase coined by Thorstein Veblen. B. is a way the wealthy, among others, advertise their wealth. C. was written about in The Theory of the Leisure Class. D. All the choices are true.
Refer to the accompanying figure.
Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. B; A B. B; C C. D; B D. D; C
The U.S. Treasury yield curve:
A. always has a negative slope. B. always has a positive slope. C. assumes maturities are constant, and reflects the difference in risk. D. shows the relationship among bonds with the same risk characteristics but different maturities.