Monetarists believe that an increase in the money supply will lead to
a. a decrease in investment
b. an increase in the interest rate
c. a decrease in the price level
d. an increase in nominal GDP
e. an increase in real GDP
A
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Information on the price elasticity of demand is particularly important to managerial decision making because:
A) the higher the price elasticity of demand for a product is, the more profitable it will be to produce more of it. B) depending on the elasticity coefficient, decision makers will immediately know if a price change will cause profits to increase or decrease. C) it allows one to predict how total revenue will respond, i.e., increase or decrease, to a change in price. D) as the price elasticity coefficient approaches one, profits will increase.
The only factor that can cause movement along the aggregate supply curve is the
a. labor force. b. capital stock. c. availability of resources. d. price level. e. All of the above are correct.