An increase in autonomous taxes
A) increases autonomous planned spending by an equal amount.
B) decreases autonomous planned spending by an equal amount.
C) increases consumption by that amount times the marginal propensity to consume.
D) decreases saving by that amount times the marginal propensity to save.
D
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For a monopolist, the price effect:
A. always outweighs the quantity effect. B. is the decrease in revenues from selling a greater quantity at a lower price. C. is always outweighed by the quantity effect. D. is the increase in revenues from selling a greater quantity at a lower price.
When demand changes and the demand curve shifts, equilibrium price and equilibrium quantity change in the same direction.
Answer the following statement true (T) or false (F)
The more flexible prices are, the
A) greater demand shifts have to be to bring about a new equilibrium. B) larger the shifts in supply will be after a change in demand. C) greater the reliance by sellers to change the nominal price. D) more quickly a shock to the economy can be absorbed.
An increase in money growth, holding all other factors constant, will cause
A) a reduction in seignorage. B) an increase in seignorage. C) no change in seignorage. D) an ambiguous effect on seignorage.