The following image shows the demand curve for neckties. At point a, consumer surplus is _____.
a. ?$5
b. $8?
c. ?$20
d. ?$26
e. ?$0
Ans: b. $8?
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The existence of automatic stabilizers will
A) cause the effects of shocks to aggregate demand to have a larger effect on GDP. B) reduce the recognition lag of discretionary fiscal policy. C) eliminate recessions. D) reduce the size of recessionary and inflationary gaps.
If a trader thinks that the value of yen with respect to the euro is about to fall, which of the following would enable him to make a profit?
A) buy a forward contract for euros B) buy a forward contract for yen C) sell yen in the spot market D) buy euros in the spot market
Which of the following is a determinant of Investment spending?
A. Real income B. Expected future income C. Taxes D. Wealth
The money supply would tend to rise if:
a. banks decide to keep more excess reserves and people convert more of their demand deposits to currency. b. banks decide to keep more excess reserves and people deposit currency in their demand deposit accounts. c. banks decide to keep fewer excess reserves and people deposit currency in their demand deposit accounts. d. banks decide to keep fewer excess reserves and people convert more of their demand deposits to currency.