The LM curve will shift to the right if
A. the interest rate decreases.
B. the money demand increases.
C. the average price level decreases.
D. the money supply decreases.
Answer: C
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In the market depicted in the above figure, if a single-price monopoly maximizes its profit, which area shows the consumer surplus?
A) area GHIL B) area HIJ C) area HJKG D) area NFL
Which of the following statements represents a correct and sequentially accurate economic explanation?
A) If government purchases rise, total expenditures on goods and services rises, and the AD curve shifts leftward. B) If government purchases rise, total expenditures on goods and services rises, and the AD curve shifts rightward. C) If consumption rises, total expenditures on goods and services rises, and the AD curve shifts rightward. D) If consumption rises, total expenditures on goods and services rises, and the quantity demanded of Real GDP rises. E) b and c
Which of the following explains the shift in the foreign exchange market?
a. U.S. residents demanded more European goods and hence demanded fewer euros.
b. Europeans demanded more U.S. goods and hence demanded more U.S. dollars.
c. U.S. residents demanded fewer European goods and hence demanded more euros.
d. Europeans demanded fewer U.S. goods and hence demanded less U.S. dollars.
Which of the following questions best illustrates the "framing effects" studied by behavioral economists?
A. Which would you rather have after lunch today: an apple or an orange? B. How much would you rather receive: $100 while everyone else gets $110, or $80 like everyone else? C. Where would you rather invest your funds in: stocks or gold certificates? D. What would you rather do: go to college and postpone having a full-time job, or forgo college and get a full-time job now?