Question

3. An increase or decrease in the quantity supplied or demanded represents supply/demand curve; An increase or decrease in supply or demand represents represents supply/demand curve

a movement along a; a shift of the entire

b a change in the slope of a; a new

c a shift of the entire; movement along

d a new; a change in the slope of a

24. At what point would an economy move from inflation to hyperinflation?

a When there is a rapid increase in prices.

b When there is a rapid decline in prices.

c When there is a rapid increase in prices along with changes in buying behavior.

d When there is a rapid decline in prices along with changes in buying behavior.

35. True or False- Time deposits are part of the M1 definition of money.

Answer 1

ANSWER-

1# An increase or decrease in the quantity supplied or demanded represents movement along supply/demand curve; An increase or decrease in supply or demand represents represents a shift of the entire supply/demand curve.

Change in quantity demanded or quantity supplied is caused because of change in price which cause movement along the same curves. Whereas change in any other factor other than price cause change in demand/supply which cause a shift in the curve.

Therefore, the answer is (a) movement along ; a shift of the entire.

2# At what point would an economy move from inflation to hyperinflation?

Answer- When there is a rapid increase in prices becasue a hyperinflation occurs when inflation rate exceeds 50% over a period of time and inflation is occurs when there is rapid increase in price.

Therefore, answer is (a)  When there is a rapid increase in prices.

3# Time deposits are part of the M1 definition of money - FALSE.

Explanation - M1 includes money and currency in checking accounts and M2 includes M1 and time deposits and saving deposits so time deposits are part of M2.