In Figure 13-3 above, suppose that the Fed maintains a fixed real money supply and that commodity demand is also fixed. The range of shifts in the LM curve, LM1 to LM2 lead to
A) an unstable equilibrium output, C to B1.
B) a stable equilibrium output, C.
C) an unstable equilibrium output, B0 to B1.
D) a stable equilibrium output, B0 to B1.
D
Economics
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Refer to the above table. Suppose the price of X increases from $10 to $12. What is the cross price elasticity of demand between X and Y?
A) -1.833 B) +0.545 C) +0.579 D) +1.833
Economics
When people make choices that (at the time and with the information they have at their disposal) give them the greatest amount of satisfaction, they are said to be:
a. behaving irrationally. b. applying econometric models to their everyday behavior. c. living under a communist dictator. d. acting in their own self-interest. e. showing no willingness to plan for the future.
Economics