If the propensity to hold money is 6 and the money supply is 12, then the classical aggregate demand curve is
a. P = 2Y
b. P/Y = 48
c. P = 1/(2Y)
d. P = 2/Y
D
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The ________ rate represents the difference between the spot and forward price
A) profit B) swap C) spread D) risk
An individual's value for a good or service is the
a. The amount of money he or she used to pay for a good b. The amount of money he or she is willing to pay for it c. The amount of money he or she has to spend on goods d. None of the above
How much revenue will the government raise from the tax?
A. $70
B. $140
C. $210
D. $280
If the economy is experiencing inflation, then the most appropriate government policy would be to:
A. shift the aggregate demand curve by using a tax increase coupled with spending cuts. B. shift the aggregate demand curve by using a tax increase coupled with more spending. C. shift the aggregate demand curve by using a tax cut coupled with spending cuts. D. shift the aggregate supply curve by using a tax cut coupled with more spending.