The demand for seats in 10 a.m. classes at the university is higher than the demand for seats in 8 a.m. classes. The supply of seats is fixed. If the university prices classes at the price required to achieve equilibrium at 10 a.m., there will be
A) a shortage at 8 a.m.
B) a surplus at 8 a.m.
C) equilibrium at 8 a.m.
D) disequilibrium at 8 a.m., but we cannot determine which type.
B
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Monetarists argue that the demand for money is unresponsive to interest rates, i.e. depends on income only, produces a
A) vertical LM function. B) horizontal LM function. C) vertical IS function. D) horizontal IS function.
Which of the following will increase the supply of vanilla ice cream?
a. an increase in the price of vanilla beans (an ingredient in ice cream) b. a decrease in the sales tax on restaurant bills c. an increase in the price of chocolate ice cream d. a decrease in the price of milk (an ingredient in ice cream) e. an increase in the price of hot fudge
Which of the following is not an exchange rate system?
a. Purchasing power parity b. Fixed exchange rates c. Flexible exchange rates d. Fixed rates within bands e. Managed floating
Given the following data, what is the distance from the origin to the point where the total expenditures (TE) curve cuts the vertical axis? C = $400 + 0.75Yd I = $120 G = $270
A) $670 B) $790.75 C) $790 D) $400 E) ?$390