Suppose the market supply curve is p = 5Q. At a price of 10, producer surplus equals

Suppose an economy's exchange rate system is the gold standard and vast tracks of gold are discovered, as is what happened in the United States in 1849. If the economy is at full employment, what should this discovery do?

A) It should lower the money supply and cause deflation. B) It should raise the money supply and cause inflation. C) It should raise the money supply and cause disinflation. D) It should raise the money supply but have no impact on the price level. E) it should not change the money supply.

Which of the following is a possible impact of a global savings glut on a small open economy?

A) interest rate would increase B) interest rate would decrease C) domestic savings would increase D) domestic investment would increase