According to the interest-rate-based transmission mechanism for monetary policy, a decrease in the money supply will cause the
A) interest rate to fall, causing planned real investment spending to rise and leading to an increase in aggregate demand.
B) interest rate to fall, causing planned real investment spending to rise and leading to a decrease in aggregate demand.
C) interest rate to rise, causing planned real investment spending to fall and leading to a decrease in aggregate demand.
D) interest rate to rise, causing planned real investment spending to rise and leading to a decrease in aggregate demand.
Ans: C) interest rate to rise, causing planned real investment spending to fall and leading to a decrease in aggregate demand.
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Suppose that U.S. tastes for British goods increase. Then, in Figure 9-3
a. the supply curve shifts from S1 to S2 b. the supply curve shifts from S2 to S1 c. the demand curve shifts from D2 to D1 d. the demand curve shifts from D1 to D2 e. both demand and supply shift to the right
If gasoline prices rise by 20% and quantity demanded falls by 5%, then the price elasticity of demand for gasoline is:
A) inelastic. B) elastic. C) unit elastic. D) perfectly inelastic.
Figure 4-8
Women today are having more babies than women did fifteen years ago. The result is that mothers today have trouble finding baby-sitters and are shocked at what they must pay for child care. Which graph in Figure 4-8 best illustrates how the situation has changed?
a.
1
b.
2
c.
3
d.
4
________ regularly trade their own gain against others' lives
A) Corporations
B) Governments
C) Individual people
D) all of the above