If economists say that a 7 percent growth in the money supply will increase aggregate demand by 7 percent, they are assuming that velocity
A. will decrease.
B. is constant.
C. will increase.
D. is unpredictable.
Answer: B
Economics
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The price elasticity of supply measures how responsive
a. equilibrium price is to equilibrium quantity. b. sellers are to a change in buyers' income. c. sellers are to a change in price. d. consumers are to the number of substitutes.
Economics
If demand is more elastic, the portion of an excise tax borne by a buyer will
A. increase. B. decrease. C. be unchanged. D. increase for normal goods, decrease for inferior goods.
Economics