Employing Figure 4-1 above, if Y increases by 3000 and the interest rate is fixed at 5% then the sensitivity of real money balances to changes in real income is
A) 0.67.
B) 0.33.
C) -0.67.
D) -0.33.
B
You might also like to view...
Ultimately, quotas ________ prices for imported goods and ________ prices for domestic goods
A) raise; raise B) raise; lower C) raise; do not affect D) do not affect; do not affect
Elaine’s firm is in a perfectly competitive industry. Why doesn’t Elaine try to sell more of her product by lowering its price below the market price?
a. Her demand curve is not elastic. b. Doing so would be considered unethical price chiseling. c. Her competitors would not allow it. d. She can sell all she wants at the market price.
The goal of the firm, according to economists, is to
A) stay in business for as long as possible. B) sell as many units of the good it produces as possible. C) grow as large as possible. D) make as much economic profit as is possible.
Which of the following was not a major factor in explaining the decline of death rates in the U.S. in the late 19th and early 20th century?
a. urbanization b. improvements in sanitation c. improvements in medical treatments d. Both a and c are correct.