An decrease in the velocity of money for given levels of income and the interest rate would shift the
a. LM curve up.
b. IS curve up.
b. IS curve down.
c. LM curve down.
A
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If you buy a DVD player produced in Japan, a
A) good was exported by Japan and imported by the United States. B) good was imported by Japan and by the United States. C) service was imported by Japan and exported by the United States. D) service was exported by Japan and imported by the United States. E) good was exported by Japan and by the United States.
In the figure, the equilibrium price is initially $3 per bushel of wheat. If suppliers come to expect that the price of a bushel of wheat will rise in the future, but buyers do not, the current equilibrium price will
A) rise. B) not change. C) fall. D) Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market.
If a firm experiences economies of scale,
a. it moves up along the long run average total cost curve. b. expansion of output becomes more expensive for the firm. c. the firm can reduce its per unit cost by producing less. d. the firm must shut down in the long run. e. the firm can reduce its per unit cost by expanding production.
A contraction of the money supply:
A. increases the interest rate and decreases aggregate demand. B. increases both the interest rate and aggregate demand. C. lowers the interest rate and increases aggregate demand. D. lowers both the interest rate and aggregate demand.