Savings and taxes are considered leakages in the circular flow model.
Answer the following statement true (T) or false (F)
True
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If expectations about future income change, there is
A) a decrease saving if people expect income to decrease in the future. B) a decrease in saving if people expect income to increase in the future. C) an increase in saving if people expect income to increase in the future. D) no change in saving until income actually changes. E) a change in the quantity of loanable funds supplied and a movement along the supply of loanable funds curve.
Contractionary monetary policy involves actions that:
A. reduce the money supply in order to decrease aggregate demand. B. increase the money supply in order to decrease aggregate demand. C. reduce the money supply in order to increase aggregate demand. D. increase the money supply in order to increase aggregate demand.
Exhibit 3 Demand and cost curves for GeneTech, a monopolist with a patented vaccine
In Exhibit 9-3, how much vaccine should GeneTech produce to maximize its profit?
A. 300 doses per hour. B. 400 doses per hour. C. Between 400 and 500 doses per hour. D. 500 doses per hour.
According to the Bureau of Labor Statistics, the Consumer Price Index was
A. never intended to measure increases in the cost of living, but many use it that way. B. never intended to measure increases in the cost of living and no one uses it that way. C. always intended to measure increases in the cost of living and does precisely that. D. only intended to measure increases in the cost of living for a small segment of society.