Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point d?
A) a decrease in income
B) an increase in the relative price of a soft drink
C) a decrease in the relative price of a soft drink
D) a decrease in the price of bottled water
B
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Suppose Carmen buys ramen noodles. To determine whether ramen noodles are a normal or inferior good for her, we must observe how Carmen
A) responds to a change in the price of a substitute for ramen noodles. B) responds to a change in the price of a complement for ramen noodles. C) responds to a change in the price of ramen noodles itself. D) responds to a change in her income. E) responds to all of the above.
The Gallatin Plan (1808) was not passed because some individuals questioned its constitutionality
Indicate whether the statement is true or false
Assume that the multiplier effect for Mexico is 0.85 for an increase in spending by the U.S. government by $1 . Therefore, a $20 billion decrease in spending by the U.S. government results in:
a. a $23.5 billion increase in Mexican real GDP. b. a $133.3 billion decrease in Mexican real GDP. c. a $3 billion decrease in Mexican real GDP. d. a $17 billion decrease in Mexican real GDP. e. a $23.5 billion decrease in Mexican real GDP.
The quantity theory of money assumes that
a. the national economy tends to operate at less than full. b. the velocity of money is unstable. c. the national economy tends to operate at full employment. d. the velocity of money varies with changes in interest rates.