Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to rise and monetary base to remain the same.
b. Demand for real goods and services to rise and M2 money supply to fall.
c. Demand for real goods and services to remain the same and M2 money multiplier to remain the same.
d. Demand for real goods and services to rise and M2 money supply to fall.
.A
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Low quality is essentially the same as
A) low price. B) efficient production. C) high price. D) low price elasticity.
If the equilibrium price of a good decreases and the equilibrium quantity of the good decreases, we can conclude that:
A. demand increased. B. demand decreased. C. supply increased. D. supply decreased.
The economic analysis of minimum wage involves both normative and positive analysis. Consider the following consequences of a minimum wage:
a. The minimum wage law causes unemployment. b. Unemployment would be lower without a minimum wage law. c. Minimum wage laws benefit some workers and harm others. d. The minimum wage should be more than $7.25 per hour. Which of the consequences above are positive statements and which are normative statements? A) a, b, and c are positive statements and d is a normative statement. B) a and b are positive statements, c and d are normative statement. C) Only a is a positive statement, b, c, and d are normative statements. D) a and c are positive statements, b and d are normative statements.
The discovery of a new source of oil will lead to:
A. increased demand for domestic currency; depreciation of the currency. B. increased demand for domestic currency; appreciation of the currency. C. increased demand for a foreign currency; appreciation of the currency. D. decreased demand for domestic currency; appreciation of the currency.