If demand is elastic, then the elasticity of demand is
A. zero.
B. between zero and 1.
C. 1.
D. more than 1.
D. more than 1.
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The Fed's current position towards the existing monetary aggregates is
A) it is convinced that M1 is the best measure of the money supply. B) it is convinced that M2 is the best measure of the money supply. C) it is an issue of ongoing research. D) it is reverting to considering currency alone as the best measure of the money supply.
The velocity of money increases if:
A. each unit of money is used less frequently. B. each unit of money is used more frequently. C. more purchases are made. D. none of the above answers is correct; the velocity of money is constant.
Which would be considered an investment, according to economists?
A. The sale of a retail department store building by Sears to JCPenney. B. The purchase of newly issued shares of stock in Dell. C. The construction of a new plant by Ford. D. Public transfer payments.
Suppose real disposable income increases by $1,000. Given this information, we know that
A) consumption will generally increase by more than $1,000. B) saving will generally increase by exactly $1,000. C) consumption will generally increase by exactly $1,000. D) consumption will generally increase by less than $1,000.