When the price level changes, which of the following variables will change and thereby cause a change in the aggregate quantity of goods and services demanded?
a. the real value of wealth
b. the interest rate
c. the value of currency in the market for foreign exchange
d. All of the above are correct.
d
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Points on a production possibilities curve are ________ and ________
A) inefficient; attainable B) inefficient; unattainable C) efficient; attainable D) efficient; unattainable
If people never withdrew money, how much money could the banking system create given a new amount of deposits, assuming that excess reserves were zero?
A. zero B. as much as the new deposits C. the amount of new deposits multiplied by the reserve ratio D. the amount of new deposits multiplied by the money multiplier
A person with a low level of glucose is more likely to:
A. make an impulsive decision. B. make a cognitive decision. C. avoid gut feelings. D. base decisions on both gut feelings and cognition.
In Figure 5.8, if the supply curve moves from S2 to S4,
A. the firm will make a smaller economic profit than they used to. B. the firm will go from making an economic profit to a loss but one that is not big enough to make it want to shutdown. C. the firm will go from making an economic profit to a loss that is big enough to make it want to shutdown. D. the firm will go from making an economic profit to a normal profit.