Figure 16-3
If budget deficits shift the money demand curve as is illustrated in Figure 16-3, which component of total expenditures will be affected the most?
a.
consumption spending
b.
government spending
c.
private investment spending
d.
net exports
c
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Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, the net gain of total economic surplus equals area(s)
A. B + C + E + F. B. B + C. C. A. D. E + F.
An inferior good is
a. any good whose demand curve shifts to the left as income rises b. any good of low quality c. one that has few substitutes d. any good produced by inexpensive labor e. any good that consumers buy less of as its price falls
The minimum amount of reserves a bank is required to hold is known as
A. Total reserves. B. Required reserve ratio. C. Excess reserves. D. The money multiplier.
Total market demand can be calculated by
A. looking at the changes in the products' popularity. B. adding up the largest quantity demanded by each individual. C. vertically summing individual demand curves at each and every income level. D. horizontally summing individual demand curves at each and every price level.