An increase in the money supply, other things being constant
A) causes interest rates to rise.
B) generates an increase in the demand for money.
C) causes the price level to increase.
D) causes the purchasing power of money to increase.
C
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Suppose the Fed had tried to keep the exchange rate at its 2001 level. In that case the Fed would have ________ dollars and its foreign reserves would have ________
A) bought; decreased B) sold; increased C) sold; decreased D) bought; increased E) None of the above is correct because the Fed cannot affect the exchange rate.
Refer to Figure 2-2. What is the opportunity cost of one pound of meat?
A) pound of vegetables B) pounds of vegetables C) 1.6 pounds of vegetables D) 16 pounds of vegetables
Maximum Feasible Hourly Production Rates for EitherFood or Cloth Using All Available Resources
Using the data in the above table, and assuming constant opportunity costs, it is likely that
A. Mexico will import both cloth and food. B. Mexico will import cloth. C. the United States will export food. D. the United States will import both cloth and food.
An increase in input productivity will ________.
A. reduce aggregate demand B. reduce the equilibrium price level, assuming downward flexible prices. C. shift the aggregate supply curve leftward D. reduce the equilibrium real output