Assume a simple macroeconomic model. When inventories rise unexpectedly,
a. income is above its equilibrium value.
b. income will rise until it reaches its equilibrium value.
c. total spending is higher than total output.
d. All of the above.
a
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Each of the following provides incentives to reduce a negative externality except:
a. merger with affected firms. b. subsidizing consumption of the good being produced. c. bargaining among firms. d. taxation of the externality.
Colorado experiences a record snowfall during the winter season. What impact will this have on the market for snowmobiles?
a. The supply of snowmobiles will increase and the price of snowmobiles will fall. b. The demand curve for snowmobiles will decrease and the price of snowmobiles will fall. c. The supply of snowmobiles will increase and the price of snowmobiles will increase. d. The demand curve for snowmobiles will increase and the price of snowmobiles will rise.
Suppose that Marlen Fisher has legal protection against anyone producing and selling a fishing lure specifically named "MarFish." This legal protection is most likely to be a:
A. trademark. B. restraining order. C. patent. D. copyright.
Table 14.3Monetary Aggregates of the U.S. Financial SystemItemAmountCash held by public$40 billionTransactions deposits$80 billionRequired reserves$20 billionExcess reserves$0 billionU.S. bonds held by public$125 billionAssume an original balance sheet: The money supply (M1) in Table 14.3 is
A. $20 billion. B. $80 billion. C. $40 billion. D. $120 billion.