If the Fed sells more bonds to the public, then the money supply will:
A. Decrease and the aggregate demand curve will shift to the right.
B. Increase and the aggregate demand curve will shift to the right.
C. Increase and the aggregate demand curve will shift to the left.
D. If the Fed sells more bonds to the public, then the money supply will shift to the left.
D. If the Fed sells more bonds to the public, then the money supply will shift to the left.
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Decreases in taxes shift the aggregate demand curve to the right
Indicate whether the statement is true or false
In a model with money neutrality, a 10% increase in the money supply leads to an increase of prices by
A) more than 10%. B) 10%. C) less than 10%, but more than zero. D) zero.
The trade-off between current consumption and the production of capital goods is also a trade-off between
A) the future cost for capital goods and future cost of consumption goods. B) having fewer needs and more wants in the future. C) satisfying the needs of the poor and the wants of the wealthy. D) current consumption and future consumption.
In the above table, if the marginal revenue product is $22, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?
A) 5; $18 B) 3; $14 C) 4; $22 D) 4; $16