If the multiplier is 6 and exports decrease by $30, what impact will that have on aggregate expenditure? Aggregate expenditure will
a) increase by $30
b) increase by $180
c) decrease by $30
d) decrease by $180
d) decrease by $180
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In most cases, higher interest rates cause the velocity of M1 to
A) turn negative. B) move erratically. C) increase. D) decline.
In Figure 13-1, which panel shows the effect of inflation on the interest rate?
a. Panel (C) b. Panel (D) c. Panel (A) d. Panel (B)
Elasticity measures how "sensitive" consumers are by measuring their change in ____ as the price of the product changes
a. attitude b. income c. quantity demanded d. supply e. taxes
The inclusion of external costs in the decision making process determining equilibrium price and quantity leads to
A. higher priced items and increased quantity. B. higher priced items and a decline in quantity. C. lower priced items and increased quantity. D. lower priced items and a decline in quantity.