An increase in the money supply would cause the IS curve to
A. shift up and to the right.
B. shift down and to the left.
C. remain unchanged.
D. shift up and to the right only if people face borrowing constraints.
Answer: C
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Which of the following describes the degree of control that the Fed has over the money supply?
A) The Fed has substantial control over the money supply. B) The Fed has absolute control over the money supply. C) The Fed has no control of the money supply. D) The Fed is not concerned about the level of the money supply, and does not attempt to control it.
Regarding the frustration of purpose doctrine, which of the following statements is true?
a. the purpose for which seller entered into the contract has become illegal b. the purpose for which buyer entered into the contract has become illegal c. the purpose of the contract has become illegal d. the contract no longer facilitates deferred exchange
If the managers of a theater plan to raise ticket prices to increase ticket revenues, then they must believe that demand is
a. elastic b. inelastic c. unit elastic d. perfectly elastic e. income elastic
Zero economic profits for a perfectly competitive firm in the long run means
a. the firm must exit the industry. b. the firm is in equilibrium. c. the firm will shut down until the market improves. d. average revenue is insufficient to cover long-run average cost.