When people like yourself hold money in the event that a good opportunity may arise, such as the opportunity to purchase high interest-bearing assets, economists classify this money as satisfying your
a. precautionary motive
b. transactions motive
c. speculative motive
d. liquidity motive
e. investment motive
C
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How nations benefit from trade?
How does an increase in government spending affect the aggregate expenditure line?
A) It shifts the aggregate expenditure line upward. B) It increases the slope of the aggregate expenditure line. C) It shifts the aggregate expenditure line downward. D) It decreases the slope of the aggregate expenditure line.
If all of the following examples are inelastic, which one will most likely have a decrease of revenue?
a. The price of cameras rises. b. The price of milk falls. c. The quantity supplied of lipstick declines. d. The quantity supplied of perfume remains constant.
Most disagreements among economists stem from normative issues
a. True b. False Indicate whether the statement is true or false