A consumer's budget line will rotate outward along the horizontal axis if:
a. the price of the good on the horizontal axis decreases.
b. the price of the good on the vertical axis increases.
c. the price of the good on the horizontal axis increases.
d. the consumer's income decreases.
a
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The money multiplier is
A) simply one over the required reserve percentage. B) the relationship between bonds and money. C) the way to calculate the impact of open market operations on foreign exchange reserves. D) equal to total reserves divided by total deposits.
Why do some economists think a global savings glut contributed to the U.S. running a current account deficit in the 2000s?
What will be an ideal response?
When a firm leaves a perfectly competitive industry,
a. the individual demand curves facing remaining firms shift towards the point of minimum average cost in the long run. b. short-run industry equilibrium is re-established at a new point along the original short-run industry supply curve. c. the short-run industry supply curve shifts to the right. d. at the new long-run equilibrium, the remaining firms in the industry will each receive a higher profit.
An adverse supply shock shifts the short-run Phillips curve right and the short-run aggregate-supply curve left
a. True b. False Indicate whether the statement is true or false