When the Fed changes the quantity of money, there is an immediate effect on
A) the inflation rate but not the price level.
B) the nominal interest rate.
C) real GDP.
D) the price level and the inflation rate.
E) the price level but not the inflation rate.
B
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A 2 percent increase in income increases the quantity demanded of a good by 1 percent. The income elasticity of demand for this good is _______. The good is a _______ good
A. 2; normal B. –2; inferior C. 1/2; normal D. 2; inferior
A monopolist has no supply curve because
a. as demand changes, each output level can be consistent with more than one profit-maximizing price b. monopolists tend to restrict output c. monopolists have no marginal cost curve d. monopolists can charge any price they want e. as demand changes, the firm's profit-maximizing choice of output may change