The real-income effect is typically small because
A) the change in price of one particular item has little effect on total purchasing power.
B) income has no relation to consumption.
C) price changes tend to balance out over time.
D) real-incomes are always rising.
Answer: A
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The Grangers were the first farm organization of importance and are noted for
a. encouraging the federal government to re-issue "greenbacks.". b. establishing cooperatives that sold farm and consumer goods to their members. c. refusing to sell grain to foreign countries. d. forming a cartel that set upper limits on members' output of basic farm products. e. All of the above.
An increase in the required reserve ratio by the Federal Reserve would:
a. cause M1 to contract. b. cause M1 to expand. c. have no effect on M1 or M2. d. affect only M2, not M1.
Why is reliable data on the formation and survival of startups difficult to obtain?
Use the following figure to answer the next question.
If box E represents government, box C businesses, box D the resource market, and box B the product market, then government purchases of computers, office supplies, and military hardware would be illustrated by arrows
A. 7 and 8. B. 5 and 6. C. 9 and 10. D. 10 and 11.