If the demand for a good is relatively inelastic, this means that consumer purchases of the good are
a. not very sensitive to the price of the good.
b. highly sensitive to the price of the good.
c. unrelated to the price of the good.
d. unaffected by changes in the income level of consumers.
A
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In an open economy, the quantity supplied of bushels of corn is ________. 
A. 300 million bushels B. 600 million bushels C. 900 million bushels D. 150 million bushels
When the housing market bubble burst, many people found that:
A. they owed more than their house was now worth. B. it was much easier to sell their home. C. the value of their homes exceeded their mortgage loans. D. there was a limited number of houses for sale.
Given that the velocity of money can be unstable in the short run, is this reason enough to dismiss money growth as a policy target? Explain.
What will be an ideal response?
An added benefit of inflation is that it allows for the possibility of
a. menu costs. b. aggregate supply shocks. c. negative real interest rates. d. recessions.