Which of the following is true?
a. When increased government purchases or expansionary monetary policy does give the economy a boost, no one knows precisely how long it will take to do so.
b. Given the difficulties of timing stabilization policy, an expansionary monetary policy intended to reduce the severity of a recession may instead add inflationary pressures to an economy that is already overheating.
c. If velocity changes, but it moves in a fairly predictable pattern, the connection between money supply and GDP is still fairly predictable.
d. All of the above are true.
d
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A curve with a positive but decreasing slope represents a relationship where, every time the variable measured along the horizontal axis increases by one unit, the variable measured along the vertical axis
A) increases by a decreasing amount. B) decreases. C) does not change by much. D) increases by an increasing amount. E) increases by a constant amount.
Which of the following is true?
A. On a linear demand curve, elasticity is constant. B. At the same price, demand is less elastic on the steeper demand curve. C. On a linear demand curve, the higher the price, the less elastic is demand. D. All are true.