The equation of exchange determines the supply of money in the economy.
a. true
b. false
Answer: b. false
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The table below shows the weekly supply for hamburgers in a market where there are just three sellers.PriceSeller 1 Qs 1Seller 2 Qs 2Seller 3 Qs 3$5854464334322221 If the price of a hamburger increases from $3 to $5, then the weekly market quantity of hamburgers supplied will
A. decrease from 17 to 9. B. decrease from 17 to 13. C. increase from 9 to 17. D. increase from 13 to 17.
The demand curve for Japanese yen will shift to the right when
A) there is a decrease in demand for Japanese-made goods in the United States. B) there is no change in the demand for Japanese-made goods in the United States. C) there is a decrease in the demand for U.S.-made goods in Japan. D) there is an increase in the demand for Japanese-made goods in the United States.
Figure 20-3
Figure 20-3 shows a worker’s backward-bending supply curve of labor. Which of the following statements is correct?
A. The substitution effect of a change in the wage dominates the income effect at all points on the curve. B. The income effect of a change in the wage dominates the substitution effect at all points on the curve. C. Above W*, the substitution effect of a change in the wage dominates the income effect; below W*, the income effect dominates the substitution effect. D. Above W*, the income effect of a change in the wage dominates the substitution effect; below W*, the substitution effect dominates the income effect.
Which of the following would be expected to cause an increase in the supply of desktops?
A. The expectation that the price of desktops will increase in future B. An increase in the price of desktops C. An increase in the number of business firms demanding desktops D. A decrease in the cost of manufacturing desktops