On the graph that depicts the theory of liquidity preference,
a. the demand-for-money curve is vertical.
b. the supply-of-money curve is vertical.
c. the interest rate is measured along the horizontal axis.
d. the price level is measured along the vertical axis.
b
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The phrase "demand has increased" means that
A) a demand curve has shifted to the right. B) there has been a downward movement along a demand curve. C) a demand curve has shifted to the left. D) there has been an upward movement along a demand curve.
If Ripco owns the building where it operates, then if
a. the firm pays no rent, there is no opportunity cost b. the firm does not rent the building to anyone else, there is no opportunity cost c. the firm pays no rent, there is an opportunity cost d. its usage of the building precludes it from renting to anyone else, there is an opportunity cost e. the firm could use the building for other things, there is no opportunity cost
Which of the following statements is most likely correct?
a. A nation may sometimes want a stronger exchange rate to stimulate aggregate demand and reduce a recession or to fight inflation. b. A nation may sometimes want a weaker exchange rate to stimulate aggregate supply and reduce a recession or a stronger exchange rate to fight inflation. c. A nation may sometimes want a stronger exchange rate to stimulate aggregate demand and fight inflation or a weaker exchange rate to reduce a recession. d. A nation may sometimes want a weaker exchange rate to stimulate aggregate demand and reduce a recession or to fight inflation.
When economists and government officials speak about the money supply, they usually mean M2
a. True b. False