Assuming that the central bank is following a money stock targeted, an exogenous rise in investment demand
a. causes income to rise but the money stock has to be increased to accommodate the expansion.
b. has to be accommodated with open market purchases to expand the money stock.
c. increases income, money demand, and lowers the interest rate.
d. increases income and money demand and lowers the interest rate.
e. none of the above.
E
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The above figure shows the apartment market in Big City. If a government policy results in a shortage of 1,500 apartments in the Big City rental market, it is most likely that the Housing Authority has imposed
A) a rent ceiling of $1500.00 monthly. B) a rent ceiling of $1000.00 monthly. C) a rent floor of $1500.00 monthly. D) a rent floor of $1000.00 monthly.
When an equal percentage increase in the factors of production raises real GDP by the same percentage, the production function has the characteristic known as
A) constant returns to scale. B) constant marginal productivity. C) diminishing marginal productivity. D) increasing returns to scale.
When trying to determine the standard of living in a given country, it is not important to observe its income distribution, because what we are interested in is the income per person in the economy
a. True b. False Indicate whether the statement is true or false
The median voter model predicts that candidate will do all the following, except:
a. label his or her opponents ad extremists b. adjust his or her positions in response to polls c. speak in specific rather than general terms d. aim for a middle-of-the-road position