The wealth-effect notes that a _____ price level increases the real value of households' wealth. The larger real wealth _____ the quantity of goods and services demanded
Fill in the blank(s) with correct word
lower, increases
You might also like to view...
In the long run, a firm can vary
A) its capital but not its labor. B) its labor but not its capital. C) both its labor and its capital. D) neither its labor nor its capital.
For a profit-maximizing monopolistically competitive firm, price exceeds marginal cost in
a. the short run but not in the long run. b. the long run but not in the short run. c. both the short run and the long run. d. neither the short run nor the long run.
Any item that serves as a medium of exchange is called
A) gold. B) capital. C) silver. D) money.
When the Fed buys a U.S. bond in the open market
A. its action has no effect on the total reserves or the money supply because the check it writes increases reserves at one bank but they fall at another. B. its action expands total reserves and the money supply. C. total reserves increase by the amount of the purchase but the money supply stays the same. D. its action contracts total reserves and the money supply.