When the money supply rises by 10%, in the short run, output ________ and the price level ________.
A. rises; is unchanged
B. declines; falls
C. declines; is unchanged
D. is unchanged; falls
Answer: A
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When the growth rate of the money supply is increased, interest rates will fall immediately if the liquidity effect is ________ than the other money supply effects and there is ________ adjustment of expected inflation
A) larger; fast B) larger; slow C) smaller; slow D) smaller; fast
A flat tax is
A. A tax system in which tax rates rise as income rises. B. The tax rate imposed on the last dollar of income. C. A tax system in which tax rates are constant. D. A tax system in which tax rates fall as income rises.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of OLED TVs is reduced by 20.
A. exactly 30 B. exactly 60 C. fewer than 30 D. more than 30
Researchers have found that the systematic mistakes that people make in their decision making include a lack of confidence in their own abilities
a. True b. False Indicate whether the statement is true or false