An expected increase in the future price of automobiles will lead to
A) an outward shift in demand for automobiles today.
B) a reduction in the demand for gasoline today.
C) a movement down the demand schedule for automobiles.
D) no predictable impact on today's demand for automobiles.
Answer: A
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The uncertainty costs of inflation cause people to
A) incur more shoe leather costs. B) increase their demand for money. C) focus on the long run, which increases investment and speeds growth. D) focus on the short run, which decreases investment and slows growth. E) increase investment causing economic growth to decrease.
The government expenditure multiplier reflects the magnification on ________ from a change in government expenditure on goods and services
A) tax receipts B) aggregate demand C) aggregate supply D) the budget deficit E) potential GDP