If the central bank decreases the money supply, then output
a. and unemployment rises.
b. rises and unemployment falls.
c. falls and unemployment rises.
d. and unemployment falls.
c
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Suppose televisions are a normal good and buyers of televisions experience a decrease in income. As a result, consumer surplus in the television market
a. decreases. b. is unchanged. c. increases. d. may increase, decrease, or remain unchanged.
If proceeds from loans are NOT deposited back in the banking system, then
A. the Fed intervenes by selling more Federal government bonds. B. the magnitude of the multiplier process is reduced. C. the magnitude of the multiplier process is increased. D. there is no effect on the magnitude of the multiplier process.
Distorting taxes always create excess burdens.
Answer the following statement true (T) or false (F)
Restaurants cluster together. That is, on one corner, there may be four similar fast-food restaurants. How can this be explained using a location game theory model?
What will be an ideal response?