Macroeconomics Answers

b. What will happen to the quantity demanded when price of a substitute of commodity X increases?

d. When both the price of a substitute and the price of a complement of commodity X rise, the demand for X?

C. What will happen to the quantity demanded when price of a complement of commodity X increases?

1. a. State law of demand with graphical representation

The research concluded that too much money supply growth for too long results eventually in higher rates of inflation suggests that: (a) there is a certain, long-term relationship between money supply growth and inflation that can be estimated precisely;(b) the relationship between money supply growth and inflation, while discoverable, is also highly variable; (c) the relationship between money supply growth and inflation is immediate and fast-acting; (d) appropriate monetary policy can bring the inflation rate to the Fed’s target level with precision over the long-term.

What is economics

Since 1947 there have been 11 such periods in the

United States. Is there a discernible see a pattern in private firms’ spending before and during a recession.

Suppose velocity increases by 2 percent and potential GDP by 2 percent. The trend rate will equal zero if the quantity of money grows by

Which of the following statements does not belong to the main benefits of foreign direct investment (FDI)?

• FDI creates new jobs and boosts government tax revenues.

• FDI creates positive knowledge spillovers.

• FDI brings competition and improves efficiency.

• FDI makes local firms more difficult to survive and thus destroys local jobs.

Which of the following statements regarding tariffs is wrong?

- A tariff reduces the gains from trade

- A tariff makes domestic producers worse off

- A tariff is a tax on imports

- A tariff moves a market closer to the equilibrium than would exist without trade

When a country allows trade and becomes an exporter of a good, which of the following statements is wrong?

- The total welfare of the nation increases

- Consumers of the good are better off

- The country has a comparative advantage at producing that good

- Producers are better off

Why the income and interest sensitivities of the demand for real balance affect the slope of LM curve?

When consumers choices are subject to an intertemporal Budget constraint, the measure of the Total reso