An increase in the money supply is likely to reduce
A. money demand.
B. interest rates.
C. the general price level.
D. nominal income.
Answer: B
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The figure above shows a nation's consumption function. If disposable income is $4 trillion, then the MPC is ________ and saving is ________
A) negative; positive B) positive; positive C) positive; zero D) negative; negative E) positive; negative
A student makes the following argument: "When a market is in equilibrium, there is no consumer surplus. We know this because in equilibrium, the market prices is equal to the price consumers are willing to pay for the good. Briefly explain whether you agree with the student's argument.
Assume that you have just returned to the United States from a summer vacation in Russia, where you exchanged American dollars for Russian rubles. Your economic actions can be said to have:
a. increased the supply of American dollars in Russia. b. decreased the supply of Russian rubles in America. c. decreased the supply of American dollars in Russia. d. increased the demand for American dollars in America. e. increased the supply of Russian rubles in Russia.
In which of the following industries would we expect collusion to be most effective?
a. retail gasoline, where most gas is sold by a large number of small dealers b. crude oil production, where most oil is sold by a small number of large sellers c. housing construction, an industry dominated by local firms that produce unique products d. soybean production, where there are large numbers of farmers in many countries