If the demand for a good is highly elastic, that good is likely to have:
A. many close substitutes.
B. many close complements.
C. few close substitutes.
D. few close complements.
Answer: A
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Assets that are easily convertible into money on short notice are referred to as being
A) diversified. B) durable. C) liquid. D) adaptable.
Which of the following shifts the short-run aggregate supply curve to the right?
a. a decrease in the actual price level b. an increase in the actual price level c. a decrease in the expected price level d. an increase in the expected price level
In their 1960 article, Paul Samuelson and Robert Solow found
A) a direct relationship between inflation and investment expenditures. B) an inverse relationship between inflation and investment expenditures. C) a direct relationship between inflation and unemployment. D) an inverse relationship between inflation and unemployment.
Which of the following statements is NOT true?
A. The supply of money decreases when the Federal Reserve Banks buy government securities from households or businesses. B. Excess reserves are the amount by which actual reserves exceed required reserves. C. Commercial banks increase the supply of money when they purchase government bonds from households or businesses. D. Commercial bank reserves are an asset to commercial banks but a liability to the Federal Reserve Banks.