If the public decides to hold smaller cash balances, this will cause a(n)
A. increase in interest rates.
B. decrease in average paychecks.
C. increase in nominal GDP.
D. increase in velocity.
Answer: D
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The graph shows the labor market for teenagers in Atlanta. If the government sets a minimum wage of $6 an hour, then the maximum amount that a teenager would be willing to spend on job search is ________ an hour
A) $2 B) $4 C) $5 D) $6 E) $3
Explain why advertising that results in spuriously differentiated products may result in a deadweight loss to total welfare
What will be an ideal response?
The demand and supply of a product is given in the above table. A unit tax of $2 is imposed on the product. The equilibrium quantity for this product after the tax is imposed is equal to
A) 30 units. B) 25 units. C) 20 units. D) 15 units.
The rational expectations school advocates: a. Monetarism
b. Keynesianism. c. the use of fiscal policy. d. the use of monetary policy. e. a passive approach to policy.