The measure of the relationship between a change in income and the consequent relative change in quantity demanded at a given price is the:
a. cross elasticity of supply

Mary decides to buy a bond from Joe for $100. The money supply will

A) neither increase nor decrease. B) increase by more than $100. C) decrease by $100. D) increase by $100.

In the short-run Keynesian model where the marginal propensity to consume is 0.75, to offset an expansionary gap resulting from a $1 billion increase in autonomous consumption, taxes must be:

A. decreased by $1.33 billion. B. increased by $1 billion. C. increased by $1.33 billion. D. decreased by $1 billion.