The price elasticity of demand for a good tends
A) not to vary over time because people adjust to changed circumstances.
B) to be greater over the long run than over a short period of time.
C) to be less over the long run than over a short period of time.
D) to rise when the demand increases.
E) toward unity in the long run.
B
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
If an individual borrows $100, and pays back $100 after a year to settle his loan, it implies that the rate of interest is:
A) 0 %. B) 100%. C) 1%. D) 10%.
An open market ________ by the Fed increases the money supply, which leads to ________ interest rates and increased GDP
A) sale; decreased B) purchase; decreased C) purchase; increased D) sale; increased
If cable TV service and satellite TV service are substitutes,
a. a decrease in the price of cable will decrease the demand for satellite TV. b. an increase in the price of cable will decrease the demand for satellite TV. c. an increase in the price of cable will generally have no effect on the demand for satellite TV. d. an increase in the price of cable will shift the demand curve for satellite TV to the left.