When inflation rises people will
a. demand more money so the price level rises.
b. demand more money so the price level falls.
c. demand less money so the price level rises.
d. demand less money so the price level falls.
c
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The opportunity cost of holding excess reserves is the federal funds rate
A) minus the discount rate. B) plus the discount rate. C) plus the interest rate paid on excess reserves. D) minus the interest rate paid on excess reserves.
The marginal product of capital is the increase in
A) capital needed to produce one more unit of output. B) output from a one-unit increase in capital. C) labor needed to accompany a one-unit increase in capital. D) output from a one-dollar increase in capital.
Globalization can increase wage inequality in the United States if international competition is primarily in industries requiring ________ workers.
A. low-skilled B. many C. few D. highly-skilled
Money serves as a store of value when:
A. there is direct trade of goods and services. B. it is a basic measure of economic value. C. it is a means of holding wealth. D. it is used to purchase goods and services.