Which of the following examples indicates an economic situation where the highest amount of money is demanded?
a. The interest rate for CDs is 6 percent.
b. The interest rate for saving accounts is 4 percent.
c. The interest rate for U.S. Treasury bills is 8 percent.
d. The interest rate for municipal bonds is 2 percent.
d. The interest rate for municipal bonds is 2 percent.
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Regardless of how price inelastic the supply curve, tax revenue from a per-unit tax rises the more price inelastic the demand curve is.
Answer the following statement true (T) or false (F)
"Gasoline purchases were up 10% last week, even though gasoline prices were 6 cents higher than the week before! You see, the law of demand does not hold for gasoline!" What is being misunderstood in the above statement?
A) Nothing at all. B) It implies the demand curve for gasoline is vertical. C) It fails to recognize that the demand curve has shifted to the right. D) It fails to hold constant all the other factors that influence demand.
The above table gives the demand and supply schedules for cat food. If the supply increases by 20 tons at every price, what is the new equilibrium price and quantity?
What will be an ideal response?
When one country has higher nominal interest rates than another country, the high-interest-rate currency is expected to ________ relative to the low-interest-rate currency
A) depreciate B) appreciate C) stay constant D) None of the above