Refer to the information provided in Figure 25.2 below to answer the question(s) that follow.
Figure 25.2Refer to Figure 25.2. Suppose money demand is currently at Point A. A decrease in the interest rate to 5%, ceteris paribus, will likely
A. increase the quantity of money demanded from $100 million to $200 million.
B. increase the quantity of money demanded from $100 million to $150 million.
C. decrease the quantity of money demanded from $200 million to $100 million.
D. increase the quantity of money demanded from $150 million to $300 million.
Answer: B
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The possible alternatives for an oligopoly range from the monopoly case with ________ to the perfectly competitive case with ________
A) high output; low output B) low prices; high prices C) low profits; high profits D) low output; high output E) no cooperation among the firms; much cooperation among the firms
The statement "The unemployment rate for teens is higher than that for adults" is
A) a political statement. B) a positive statement. C) a normative statement. D) an ethical statement.
Which statement is true?
A. Most people would put in a maximum workweek of 48 hours no matter what the pay. B. As one's income rises, eventually the income effect outweighs the substitution effect. C. As one's income rises, eventually the substitution effect outweighs the income effect. D. The "backward bending" supply curve is not really backward bending.
Government intervention always results in the optimal mix of output.
Indicate whether the statement is true or false.