A straight-line downward-sloping demand curve has a price elasticity of demand which:
A. Decreases as price decreases
B. Increases as price decreases
C. Is zero at all prices
D. Is unitary at all prices
A. Decreases as price decreases
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Refer to Figure 13-1. Ceteris paribus, a decrease in households' expectations of their future income would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Refer to Figure 19-9. According to the graph, is there a surplus or shortage of Saudi Arabian riyal in exchange for U.S
dollars? To maintain the pegged exchange rate, will the Saudi central bank need to buy riyal in exchange for dollars or sell riyal in exchange for dollars? How many riyal will the Saudi central bank need to buy or sell?
If the economy is in a recession and prices are relatively stable, then the discretionary fiscal policy or policies that would most likely be recommended to correct this macroeconomic problem would be:
a. Increased government spending or decreased taxation, or a combination of the two actions b. Decreased government spending or decreased taxation, or a combination of the two actions c. Increased government spending or increased taxation, but not a combination of the two actions d. Increased government spending or increased taxation, or a combination of the two actions
Imagine an ideal scenario where world peace prevails and all nations are led by peace-minded leaders. In such a world, the:
A. MB for defense goods would shift left B. MB for defense goods would shift right C. MC for defense goods would shift left D. MC for defense goods would shift right