Asset demand for money is related to money functioning as a
A) unit of accounting.
B) medium of exchange.
C) store of value.
D) medium of deferred payment.
C
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Which of the following would not be included in the expenditure category called investment expenditures?
A) a purchase of shares of preferred stock B) spending on new houses C) a purchase of a copy machine by FedEx Office D) the cars held in inventory on a local Ford dealer's lot
Other things being equal, what is the effect of deficit spending on interest rates?
A) Interest rates decline. B) Interest rates rise. C) Interest rates hold constant because the demand for credit decreases. D) There is no impact unless the Federal Reserve decides to alter the money supply.
For a perfectly competitive firm
A) price is greater than marginal revenue. B) price equals marginal revenue. C) price is less than marginal revenue. D) there is no relationship between price and marginal revenue.
During the course of a week, McDonald's has enough time to hire or layoff workers, but it does not have enough time to expand its kitchen or add an additional seating area. In this situation, McDonald's:
a. has no fixed costs. b. is in the short run. c. suffers an economic loss. d. earns a large profit.