Which of the following statements is true?
a. The speculative demand for money at possible interest rates gives the demand for money curve its upward slope.
b. There is an inverse relationship between the quantity of money demanded and the interest rate.
c. According to the quantity theory of money, any change in the money supply will have no effect on the price level.
d. All of these.
b
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If the price of a substitute increases, which of the following is most likely to happen in the market for the product under consideration in the short run?
A) Supply will increase. B) Firms will leave the market. C) Firms will devote more variable inputs in the production of this good. D) Firms will devote less variable inputs in the production of this good.
The income effect in the work-leisure model induces a person to work less in response to higher wages, which tends to make the labor-supply curve slope backward
a. True b. False Indicate whether the statement is true or false
An adverse supply shock shifts the short-run Phillips curve right and the short-run aggregate-supply curve left
a. True b. False Indicate whether the statement is true or false
What is significant about a point on a graph at which an indifference curve is tangent to a budget constraint?