Lowering the required reserve ratio __________ the simple deposit multiplier which will __________ the economy's money supply
A) raises; increase
B) raises; decrease
C) lowers; increase
D) lowers; decrease
A
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Fill in the blank: Other things constant, the growing availability of college degrees being offered through online programs will tend to ________ the price elasticity of demand for more traditional college degree programs
A) leave unchanged B) decrease C) increase D) alter for the better
Aggregate demand in India increased in 2008. In addition, real GDP grew strongly and inflation approached 10 percent. The best explanation for this inflation is that
A) aggregate supply did not change. B) potential GDP decreased. C) there was a movement up along the aggregate demand curve in 2008. D) potential GDP increased, but at a slower rate than aggregate demand.
What could be a reason for a falling inflation rate?
a. Consumer optimism b. A negative spending shock c. Unemployment is below the natural rate d. An increase in oil prices e. A sudden increase in investment spending
Static gains from trade come about because trade causes consumers and producers to face a different set of prices
Indicate whether the statement is true or false