With expansionary monetary policy, investment, consumption, and net exports all ____________ which results in the AD curve shifting to the ____________ increasing real GDP and the price level.
Fill in the blank(s) with the appropriate word(s).
Answer: increase, right
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Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 cash deposit, then, excluding the $1,000 initial deposit, the banking system can increase the money supply by:
a. $900. b. $910. c. $1,000. d. $9,000. e. $10,000.
Everyone working the land knows the usefulness of investing in land irrigation systems but those who work the land may choose not to invest in these profitable irrigation systems as long as
a. the investments are too expensive b. unskilled labor is widely available c. birth rates are high d. the government dictates choice of investment e. their property rights, with respect to the land and water, are subject to change
Why not designate the poorest 10 percent of the population as the official measure of poverty?
A firm's total variable cost (TVC) is defined as a cost that
A) does not change (is not "variable") as the firm changes its output. B) changes as the firm changes its output. C) falls as the firm increases its output. D) varies only when the firm reaches the long run.