Holding the velocity of money constant, according to the equation of exchange, a 10 percent increase in the money supply could possibly cause which of the following?
A. A 5 percent decrease in the price level.
B. A 10 percent decrease in the quantity of output.
C. A 5 percent increase in the quantity of output.
D. A 10 percent increase in the price level.
Answer: D
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Refer to Table 13-4. Victoria's profit-maximizing output is where
A) total profit equals $3. B) marginal revenue and marginal cost both equal $4. C) marginal cost is at its minimum value. D) marginal revenue and marginal cost both equal $3.
Peter Schran plays no favorites. It's one price for all customers. Under this circumstance, we know that
a. MR = MC b. P = MC c. TR = TC d. P = AR e. P = TR
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 96 ? 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 6Q1 and MC2 = 3Q2. How much output should be produced in plant 2 in order to maximize profits?
A. 4 B. 1 C. 2 D. 3
The increase in the price of a good would
A. cause a movement along the demand curve to a (lower price, higher quantity) point. B. move its demand curve to the left. C. cause a movement along the demand curve to a (higher price, lower quantity) point. D. move its demand curve to the right.