In 1963, the tax rate for those individuals earning in the highest income tax bracket was 91 percent

According to the misperceptions theory, an anticipated 10% decrease in the money supply leads to a short-run reduction in the price level of

A) 0%. B) 5%. C) some amount between 0% and 10%. D) 10%.

The substitution effect argues that a consumer

A) will always use the additional purchasing power from a price decrease to purchase more of both goods. B) will not purchase more of a good when its price falls. C) will purchase more of a good that has become relatively cheaper, and less of a good that has become relatively more expensive. D) will purchase less of both goods if his or her real income increases.