If we let Md reflect money demand, then we can write the equation for money demand as:
A. Md = VY.
B. Md = (1/V) PY.
C. Md = PY.
D. Md = V(Y/P).
Answer: B
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A monopolist faces a demand curve given by P = 20 - Q and has total costs given by TC = Q2. By using a bit of calculus, you should be able to determine that the firm's marginal revenue is MR = 20 - 2Q and its marginal cost is MC = 2Q. What is its profit-maximizing price?
a. $20 b. $15 c. $10 d. $5
Figure 3.6 illustrates a set of supply and demand curves for hamburgers. A decrease in demand and a decrease in quantity supplied are represented by a movement from:
A. point c to point a. B. point a to point c. C. point b to point c. D. point d to point b.
Nominal rates of protection
A) are always greater than effective rates of protection. B) are always smaller than effective rates of protection. C) refer to the tariffs placed on intermediate goods used to make the final good or service. D) cannot be negative.
Refer to the above table. You have a choice among four alternatives. Choice A lets you invest $250,000 at 4 percent; B lets you invest $125,000 at 6 percent; C lets you invest $62,500 at 8 percent, and D lets you invest $31,250 at 10 percent. Which choice will get you to $1 million faster?
A. A B. B C. C D. D