Disinflation refers to a situation where:
A. Price level falls, but the rate inflation does not
B. Price level rises, but the rate of inflation does not
C. The rate of inflation falls, but the price level does not
D. The rate of inflation rises, but the price level does not
C. The rate of inflation falls, but the price level does not
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If bank depositors in the U.S. suddenly decided to withdraw in currency everything in their checking accounts, commercial banks would
A) be better off because their legally required reserves would decline. B) be unable to meet their demands and would become insolvent. C) borrow the required Federal Reserve notes to meet the requests for currency. D) give them the currency held in their vaults as backing for the checking accounts. E) refuse to honor their requests for 30 days.
The demand for money curve shifts rightward if
A) the price level increases. B) real GDP increases. C) the nominal interest rate increases. D) the real interest rate decreases.
In which of the following situations will the effect upon the equilibrium price of wheat be indeterminate?
a. supply decreases and demand increases b. demand decreases and supply increases c. demand remains constant and supply increases d. supply decreases and demand decreases e. supply remains constant and demand increases
Justin is trying to decide whether he wants to spend a $50 birthday check on a new DVD player or tickets to a concert. If he chooses the DVD player, what is the opportunity cost of this decision?
A. Birthday check B. DVD player C. Concert tickets D. $50