An increase in nominal GDP will
A. decrease the transactions demand and the total demand for money.
B. decrease the transactions demand for money but increase the total demand for money.
C. increase the transactions demand and the total demand for money.
D. increase the transactions demand for money but decrease the total demand for money.
Answer: C
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Brand names are an example of
A) economies of scale. B) product differentiation. C) oligopoly. D) illegal barriers to entry.
Looking at the U.S. personal saving rate over the last sixty years, we can say that ________
A) it has always been low B) Americans used to spend a lot more than they have in recent years C) Americans used to save a lot more than they have in recent years D) it has always been fairly high E) Americans spend more when concerned about their future earnings
Assume that steel is used to produce monkey wrenches. Ceteris paribus, if the price of steel rises, then
A. There will be a leftward movement along the initial supply curve for monkey wrenches. B. There will be a rightward movement along the initial supply curve for monkey wrenches. C. The supply curve for monkey wrenches will shift to the right. D. The supply curve for monkey wrenches will shift to the left.
The stimulus package proposed in 2009 by newly-elected President Obama included
A. rapid contraction of the overall size of the federal government as a share of GDP. B. a combination of tax changes and significant increases in federal government spending. C. reduced levels of federal government aid to state and local governments. D. reduced income tax rates for high-income individuals.