An increase in the money supply typically leads to
A) a reduction in the rate of interest.
B) a decrease in the price level.
C) a reduction in the velocity of money.
D) an inward shift in money demand.
A
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Suppose the equilibrium wage rate for apricot pickers is $9.00 per hour in California and at that wage rate the equilibrium quantity of apricot pickers is 14,000. If the minimum wage is set at $7.50 per hour, then the
A) quantity of apricot pickers employed increases. B) quantity of apricot pickers employed decreases. C) quantity of apricot pickers employed does not change. D) wage rate for apricot pickers increases. E) some apricot pickers are unemployed.
Ceteris paribus, which of the following is most likely to cause a decrease in the supply of skateboards?
A. An increase in the price of skateboards. B. An improvement in skateboard-making technology. C. An increase in the cost of materials used to produce skateboards. D. All of the choices are correct.
If nations trade on the basis of comparative advantage
A. a nation can usually gain only it has an absolute advantage. B. all trading partners share equally in the gain. C. all trading partners share in the gain with distribution determined by their negotiating ability. D. a nation with an absolute advantage gains more than the other nations.
When demand is unit elastic
A) price and revenue move in opposite directions. B) price and revenue are not related. C) price and quantity demanded move in opposite directions. D) price and revenue move in the same direction.