Exchange rates that are allowed to fluctuate in the open market in response to changes in supply and demand are known as
A) fixed exchange rates.
B) gold exchange rates.
C) flexible exchange rates.
D) IMF exchange rates.
C
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According to Malthus, if the standard of living is above subsistence:
A) couples have more children. B) consumption is more than savings. C) couples have fewer children. D) savings is more than consumption.
Which of the following models advocate that the quantity of money should be increased at a constant rate?
A) the real business cycle model B) the new classical model C) the new Keynesian model D) the monetarist model
By looking at the graphs showing the impact of a positive supply shock on aggregate demand and aggregate supply and on the Phillips curve, we can see that a positive supply shock would shift ______.
a. the short-range aggregate supply curve left and the short-run Phillips curve right
b. the short-range aggregate supply curve right and the short-run Phillips curve left
c. both the short-range aggregate supply curve and the short-run Phillips curve right
d. both the short-range aggregate supply curve and the short-run Phillips curve left
Which of the following is not true about the marginal propensity to consume?
A. It is equal to the slope of the consumption function. B. It is equal to the change in consumption divided by the change in disposable income. C. It is always equal to or greater than 1. D. It is equal to 1 - MPS.