The earnings of a resource include both opportunity cost and economic rent, if the supply curve of a resource is downward sloping
Indicate whether the statement is true or false
false
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Suppose the required reserve ratio is 10%, excess-to-deposit ratio is 10%, and the currency-to-deposit ratio is 20%. If the Fed buys $50 million worth of securities, what will happen to the money supply?
What will be an ideal response?
The Laffer curve demonstrates that raising tax rates:
A. increases then decreases tax revenues. B. always increases tax revenues. C. always decreases tax revenues. D. decreases then increases tax revenues.
Which of the following combinations of changes in government spending and taxes in necessarily expansionary?
A) Increase/Increase B) Increase/Decrease C) Decrease/No change D) Decrease/Increase E) Decrease/Decrease
If advertising is successful,
A. The demand curve shifts to the left, and demand becomes more price-elastic. B. The demand curve shifts to the left. C. The demand becomes more elastic. D. The demand curve shifts to the right and becomes steeper.