In the graph of the money market, the money supply curve is

a. vertical. It shifts rightward if the Fed buys bonds.
b. vertical. It shifts rightward if the Fed sells bonds.
c. upward sloping. It shifts rightward if the Fed buys bonds.
d. upward sloping. It shifts rightward if the Fed sells bonds.

a

Economics

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Refer to Figure 11.2. Suppose that Ca = 40, MPC = 0.8, I = 10. The value of autonomous consumption is

A) 10. B) 40. C) 50. D) 80.

Economics

An increase in the expected price level shifts short-run aggregate supply to the

a. right, and an increase in the actual price level shifts short-run aggregate supply to the right. b. right, and an increase in the actual price level does not shift short-run aggregate supply. c. left, and an increase in the actual price level shifts short-run aggregate supply to the left. d. left, and an increase in the actual price level does not shift short-run aggregate supply.

Economics