The quantity theory of money of the Classical economists says that a change in the money supply will produce a:
a. proportional change in the price level.
b. greater than proportional change in the price level.
c. less than proportional change in the price level.
d. wide variation in the velocity of money.
a
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All of the following would be considered a direct material for an automobile
A. Tires B. fabric for seats C. Batteries D. sand paper.
A monopolistically competitive firm that earns economic profits in the short run will be able to expand its market share even if the market size remains constant
Indicate whether the statement is true or false
On a graph showing investment along the vertical axis and income along the horizontal axis, _____
a. the investment line will be downward sloping b. the investment line will be upward sloping c. the investment line will be horizontal d. the investment line will be vertical e. the investment line will be U-shaped
Domestic producers of a good become better off, and domestic consumers of a good become worse off, when a country begins allowing international trade in that good and
a. the country becomes an importer of the good as a result. b. the world price exceeds the domestic price of the good that prevailed before international trade was allowed. c. other countries have a comparative advantage, relative to the country in question, in producing the good. d. total surplus does not change as a result.