When demand is price inelastic,
a. price and total revenue move in the same direction.
b. price and total revenue move in the opposite direction.
c. total revenue increases whether price goes up or down.
d. total revenue decreases whether price goes up or down.
A
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If China's government runs a budget surplus and there is no Ricardo-Barro effect, there will be ________ in the supply of loanable funds, private saving ________ and investment ________
A) an increase; decreases; increases B) a decrease; increases; increases C) an increase; increases; increases D) a decrease; decrease; increases
Whenever fiscal policy actions, such as income tax cuts, are utilized to expand the economy, the Keynesians prefer
a. a contractionary monetary policy. b. monetary policy to stay the same because of the liquidity trap. c. accompanying decreases in the money supply that will cause the interest rate to rise and, thus, prevent the crowding out of investment. d. accompanying increases in the money supply in order to prevent the interest rate from rising and, thus, prevent the crowding out of investment. e. both b and/or d