When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand
B. increase; raise; decline
C. decline; lower; decline
D. decline; raise; decline
Answer: B
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In the ________ increases in the supply of money will ________
A) long run; lead to lower prices B) short run; raise total demand and output C) long run; raise total demand and output D) short run; decrease total demand and output
When a consumer has chosen an optimal bundle of goods, this bundle maximizes marginal utility.
Answer the following statement true (T) or false (F)
The Malthusian model emphasizes fixity in which of the following factors of production?
A) labor B) land C) energy D) none of the above
When marginal utility begins to diminish, total utility always diminishes
a. True b. False Indicate whether the statement is true or false