The Fed has announced that it plans to lower the rate of monetary growth from 10% per year to 2% per year. You would expect this announcement to directly
A. increase money demand, shifting the LM curve up and to the left.
B. increase money demand, shifting the LM curve down and to the right.
C. decrease money demand, shifting the LM curve up and to the left.
D. decrease money demand, shifting the LM curve down and to the right.
Answer: A
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In order to discourage consumers from consuming sugary soft drinks, the government is considering placing a tax on sugary soft drink sales. Which of the following statements is true?
A. Given the numerous alternatives, consumers' demand for sugary soft drinks is relatively elastic and the tax will likely work to discourage sugary soft drink consumption. B. The tax on sugary soft drinks will likely decrease the demand for sugar-free soft drinks. C. The tax on sugary soft drinks will likely raise considerable revenue, but will be unlikely to reduce the consumption of sugary soft drinks by consumers. D. Taxes do not discourage consumers from consuming products.
If the price level increases, everything else held constant, the ________ curve shifts to the ________
A) IS; right B) IS; left C) LM; left D) LM; right
Economics is the study of the logic of
a. rational decisions. b. decision-making activities. c. ends and means. d. choosing options from those available. e. All of the above are correct.
A bread company borrows money to buy a high-capacity oven. The loan amount is $10,000 and the annual interest rate is 10%. Which of the following calculates the interest cost to the company for one month?
a. ($10,000 ÷ 12) ÷ 0.10 b. ($10,000 x 0.10) ÷ 12 c. $10,000 ÷ (0.10 ÷ 12) d. $10,000 ÷ (12 x 0.10)