A graph illustrating the relationship between the quantity of money demanded and the interest rate would have a slope that is:
a. positive.
b. negative.
c. horizontal.
d. vertical.
b
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Which of the following statements is true of the Europeans in the period of colonization?
A) Europeans set up extractive economic institutions in all areas. B) Europeans set up relatively extractive economic institutions in areas that had greater population densities. C) Europeans set up relatively inclusive economic institutions in areas that had greater population densities. D) Europeans set up inclusive economic institutions in all areas.
The assumption of wage and price flexibility lead classical economists to conclude that business cycle fluctuations are short-term in nature
a. True b. False Indicate whether the statement is true or false
Exhibit 10-2 A monopolistic competitive firm
If all firms in a monopolistic competitive industry have demand and cost curves like those shown in Exhibit 10-2, we would expect that in the long run:
A. all firms will leave the industry. B. some firms will leave the industry. C. firms in the industry earn zero economic profits. D. a number of new firms will enter the industry.
The relationship between quantity supplied and price is __________ and the relationship between quantity demanded and price is ____________.
A. direct; direct B. inverse; inverse C. inverse; direct D. direct; inverse