If the initial deposit into the banking system is $500 billion, and if the total $8,000 billion represents the maximum money supply permissible, then the potential money multiplier must be
a. 8
b. 8.3
c. 11
d. 16
e. 20
D
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A higher inflation rate can lead to lower unemployment if ________ mistakenly expect the inflation rate to be lower than it turns out to be
A) workers, but not employers B) employers, but not workers C) both workers and employers D) neither workers nor employers
Coffee Mug Pricing Manny's Merchandising can custom print logos onto coffee mugs. It sells it most popular style for $10 and has a marginal cost, including a blank mug and the printing, of $6 . Manny recently ran a diff-in-diff experiment and determined your demand elasticity is -5 . Should Manny raise or lower price?
A Commodity X will be considered as a normal good if:
a. the quantity of the good consumed decreases with an increase in income. b. the quantity of the good consumed increases with an increase in income. c. the quantity of the good consumed increases in the same proportion as the increase in income. d. the quantity of the good consumed reflects no change with a change in income.
Average revenue is:
A. marginal revenue minus marginal cost. B. total revenue divided by the quantity of output. C. total revenue minus total cost. D. marginal revenue divided by the quantity of output.