When the Fed increases the money supply,
A) the interest rate rises and this stimulates consumption spending.
B) the interest rate falls and this stimulates investment spending.
C) the interest rate rises and this stimulates investment spending.
D) people spend less because they have more money.
B
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A group price discriminator sells its product in Florida for three times the price it sets in New York
Assuming the firm faces the same constant marginal cost in each market and the price elasticity of demand in New York is -2.0, the demand in Florida A) has an elasticity of -6.0. B) is more price elastic than the demand in New York. C) has an elasticity of -1.2. D) has an elasticity of -0.67.
If the demand for the finished product increases, the:
a. demand for the resources will increase. b. demand for the resources will decrease. c. marginal factor cost will increase. d. marginal factor cost will decrease. e. MP will increase.
To be valid, an economic model must
a. include every activity that occurs in the real world b. include every economic activity that occurs in the real world c. be useful in explaining cause-and-effect relationships in the real world d. exclude any link to the real world e. not be based on an abstraction of the real world
The two traumatic events which disrupted China's economic development in the late 1950s and mid-1960s were the _________________________ and the _________________________.
Fill in the blank(s) with the appropriate word(s).