Historically speaking, a one-dollar decrease in household wealth will cause consumer spending to fall by:
A. $0.30 to $0.70.
B. $3.00 to $7.00.
C. $0.03 to $0.07.
D. $30.00 to $70.00.
Answer: C
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The Fed buys $50,000 of government securities. The desired reserve ratio is 10 percent and the currency drain ratio is zero. What will be the change in the quantity of money?
A) $0 B) $5,000 C) $50,000 D) $5,000,000 E) $500,000
The revenue curves that a monopoly faces are different from those that a perfectly competitive firm faces in that the:
A. marginal revenue curve is downward sloping instead of flat. B. average revenue curve is no longer equal to price. C. marginal revenue curve is now flat instead of downward sloping. D. total revenue curve for a monopoly is linear.
The way one unit of a firm relates to another in the same firm is referred to as being
A) upstream or downstream. B) latitudinal or longitudinal. C) left or right. D) competitor or conspirator.
Describe the three purposes that money must perform.
What will be an ideal response?