A sale of securities by the Fed causes
A) a contraction of the money supply equal to the amount of the securities sold.
B) an expansion of the money supply equal to the amount of the securities sold.
C) a multiple expansion of the money supply greater than the amount of the securities sold.
D) a multiple contraction of the money supply greater than the amount of the securities sold.
D
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The price of furnace filters increased by 5 percent and the quantity demanded did not change. The price elasticity of demand for furnace filters is
A) perfectly inelastic. B) inelastic. C) elastic. D) unit elastic. E) perfectly elastic.
Refer to Table 2-13. What is Tammi's opportunity cost of grooming a dog?
A) two bathed cats B) half a bathed cat C) one and a half bathed cats D) two-thirds of a bathed cat
The aggregate demand curve will shift to the right ________ the initial decrease in taxes
A) by less than B) by more than C) by the same amount as D) sometimes by more than and other times by less than
The potential output of an economy is the level of output produced when the: a. real wage equals the nominal wage
b. price level is constant. c. expected real wage equals the nominal wage. d. seasonal unemployment rate is zero. e. expected price level equals the actual price level.