When there are fewer substitutes for a product, the ________ for the product is ________.
A. income elasticity; smaller
B. demand; more price elastic
C. income elasticity; greater
D. demand; less price elastic
Answer: D
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To raise economic growth, a tighter fiscal policy should be accompanied by a ________ money supply in order to keep the ________ from falling
A) larger, output ratio B) larger, real interest rate C) smaller, output ratio D) smaller, real interest rate
In the simple liquidity preference model, if the money demand curve is elastic, then:
A. small changes to the money supply will cause large changes to the interest rate. B. only large changes to the money supply will cause large changes to the interest rate. C. small changes to the money supply will cause insignificant changes to the interest rate. D. even large changes to the money supply will cause small changes to the interest rate.
The international trade agreement that was executed in the 1940s was
a. the NAFTA b. the U.S.–Mexico Border 2012 Agreement c. the London Convention d. the 1996 Protocol e. the GATT
A price ceiling set above the equilibrium price is not binding
a. True b. False Indicate whether the statement is true or false