An increase in the money supply is likely to reduce
A. interest rates.
B. nominal income.
C. the general price level.
D. money demand.
Answer: A
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When the price of, say, a package of rice changes, what must the BLS do next?
A) immediately incorporate the new price into the CPI B) determine if the new price is consistent with other price changes for the period C) determine if the size, quality, weight, or packing of the rice has changed and adjust the price accordingly D) ignore the price change E) immediately incorporate the new price into the CPI only if the price has fallen
Why does the GG schedule have a positive slope?
A) The monetary efficiency gain a country gets by joining a fixed exchange rate area falls as its economic integration with the area increases. B) The monetary efficiency gain a country gets by joining a fixed exchange rate area rises as its economic integration with the area decreases. C) The monetary efficiency gain a country gets by joining a fixed exchange rate area rises as its economic integration with the area increases. D) The monetary efficiency gain a country gets by joining a floating exchange rate area rises as its economic integration with the area increases. E) The monetary efficiency gain a country gets by joining a fixed exchange rate area is constant after their integration into the area.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.
To maximize your financial well-being, you should:
As president and owner of the Sour Grapes Lemonade Company, you know that you face:
A. Continue to operate in the short run because rent is less than sales
B. Shut down because variable costs exceed fixed costs
C. Shut down because the company is losing money
D. Continue operating in the short run