The idea that a decrease in the price level raises the real value of households' money holdings, which increases consumer spending and the quantity of goods and services demanded is known as

To change the rate of growth of the money supply, the Fed can do all but which one of the following?

A) Shift the demand for money curve by changing the interest rate. B) Engage in open market operations. C) Change the discount rate. D) Change the required reserve ratio.

The government proposes a tax on imported champagne. Buyers will bear the entire burden of the tax if the

A) demand curve for imported champagne is horizontal. B) demand curve is downward sloping and the supply curve is upward sloping. C) demand curve for imported champagne is vertical. D) supply curve for imported champagne is vertical.