A short-run appreciation of the British pound would be consistent with:
a. a temporary fall in the British money supply.
b. a temporary fall in the European money supply.
c. a temporary rise in the European money supply.
d. either a temporary fall in the British money supply or a temporary rise in the European money supply.
Ans: d. either a temporary fall in the British money supply or a temporary rise in the European money supply.
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Keynesian models involve considerable efforts to explain the determinants of
A) the money supply. B) aggregate supply. C) liquidity preference. D) the demand deposit multiplier.
If the price of potato chips increases, other things constant, demand for potato-chip dip will:
a. not change; only quantity demanded will change. b. increase, because the goods are substitutes. c. decrease, because the goods are substitutes. d. decrease, because the goods are complements. e. increase, because the goods are complements.