You may consume ice cream or frozen yogurt, and ice cream consumption is plotted along the horizontal axis of your indifference map. The prices are denoted PY for frozen yogurt and PIC for ice cream
Under what condition will you only consume frozen yogurt? A) MRS is greater than PIC/PY
B) MRS is less than PIC/PY
C) MRS is less than PY/PIC
D) MRS is infinite
B
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The money demand curve will shift to the left if:
A. the price level decreases. B. the nominal interest rate decreases. C. the nominal interest rate increases. D. the price level increases.
If GDP per capita rises by 2% between 2015 and 2016, which of the following is necessarily true?
A) The population has increased, but by less than 2%. B) The population has decreased. C) Real GDP has risen by more than 2%. D) None of the above is necessarily true.
If bankers become more uncertain regarding future deposits and withdrawals and choose to hold more excess reserves against deposits, the money multiplier will increase
Indicate whether the statement is true or false
Since there are smaller fluctuations in the equilibrium prices of final goods than in the prices of intermediate goods, the producer price index is more volatile than the consumer price index
a. True b. False Indicate whether the statement is true or false