Author Question: As the time to respond to a change in market conditions increases, the odds of supply being elastic: ... (Read 64 times)

genevieve1028 · **on:** Jun 30, 2018

As the time to respond to a change in market conditions increases, the odds of supply being elastic:
a. Increase.
b. Decrease.
c. Stay the same.
d. Cannot be determined.

Question 2

The most likely impact of an unanticipated increase in the money supply is a(n):
a. increase in the real interest rate, which in turn stimulates investment and GDP.
b. decrease in the real interest rate, which in turn stimulates investment and GDP.
c. decrease in real output, which causes the real interest rate to decline and in turn stimulate investment and GDP.
d. increase in real output, which causes the real interest rate to decline.