When the rate of interest in the economy increases
A. the market price of existing bonds will fall.
B. the transaction demand for money will increase.
C. the asset demand for money will increase.
D. real Gross Domestic Product (GDP) will increase.
Answer: A
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Periods of low or negative inflation are generally ________ to farmers, who are ________ as a group
A) advantageous, creditors B) advantageous, debtors C) harmful, creditors D) harmful, debtors
Between 1620 and 1710, the price of tobacco in the colonies:
a. rose rapidly. b. remained fairly stable due to monopolistic competition. c. fell from over 20 pence sterling to roughly one pence per pound. d. fell from over 20 pence sterling to roughly 10 pence per pound.
Which of the following statements does not help to explain why government drug interdiction increases drug-related crime?
a. The demand for illegal drugs is inelastic. b. Interdiction results in drug addicts having a greater need for quick cash. c. Interdiction results in an increase in the amount of money needed to buy the same amount of drugs. d. Government drug programs are more lenient now with drug offenders than they were in the 1980s.
In the first half of 2017, automobile sales in the United States were lower than they were in the first half of 2016. The decrease in auto sales impacts GDP because new automobiles are counted as ________ when purchased by households and ________ when
purchased by businesses. A) nondurable goods; durable goods B) consumption; investment C) investment; consumption D) durable goods; nondurable goods