If total spending exceeds total output, then
A. inventory levels will rise.
B. inventory levels will remain constant.
C. inventory levels will fall.
D. output will eventually decrease.
Answer: C
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A) 2 hours B) 3 hours C) 4 hours D) 5 hours E) 6 hours
A demand elasticity coefficient is a measure of the sensitivity of quantity demanded to a change in one of the determinants of demand
Indicate whether the statement is true or false
After a natural disaster, such as a hurricane, the increased demand for certain items (like lumber, electric generators, and chainsaws) causes their prices to rise. These higher prices
a. discourage the flow of these items into the area. b. encourage consumers to purchase the items even if they do not plan to use them. c. help to direct the items toward their highest valued uses. d. do all of the above.
Refer to Table 9-5. The required reserve ratio is 10%. What is the value of the deposit multiplier?
A) 1 B) 2.5 C) 7 D) 10