The above figure shows the demand curve for movie rentals from Redbox. If Redbox lowered its price from $1.50 to $1.00, then total revenue would ________ because demand is ________
A) decrease; elastic
B) increase; elastic
C) decrease; inelastic
D) increase; inelastic
C
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In the IS model, assuming that the real interest rate does not change, an increase in ________ leads to an increase in equilibrium saving by households
A) autonomous consumption B) taxes C) financial frictions D) all of the above E) none of the above
An increase in capital will increase real GNP per person
a. more in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment. b. more in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment. c. less in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment. d. less in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.
Suppose the United States' imports substantially affect foreign incomes, and the foreign countries import from the United States. The United States' spending multiplier will exceed the spending multiplier for a comparable small open economy.
Answer the following statement true (T) or false (F)
Assume that the required reserve ratio is 20%. A business deposits a $50,000 check at Bank A; the check is drawn against Bank B. What happens to the reserves at Bank A and Bank B?
A. increase by $10,000 at Bank A and decrease by $50,000 at Bank B B. increase by $50,000 at Bank A and decrease by $50,000 at Bank B C. Reserves stay the same in both banks. D. increase by $10,000 at Bank A and decrease by $10,000 at Bank B