In the money market, a decrease in money demand will:
A) result in a rightward shift in the money demand curve increasing interest rates.
B) result in a rightward shift in the money demand curve decreasing interest rates.
C) result in a leftward shift in the money demand curve increasing interest rates.
D) result in a leftward shift in the money demand curve decreasing interest rates.
D
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Whenever the economy is producing the maximum amount of goods given the level of technology and the amount of resources
A) the number of resources used should be decreased since society must protect its scarce resources. B) the concept of opportunity costs does not exist. C) more goods will be available than customers want to buy. D) the economy is producing efficiently.
What are the two possible causes of market failure?
If unexpected news raised people's expectations of a corporation's future dividends and price, then before the price changes this corporation's stock would be
a. overvalued, so its price would rise. b. overvalued, so its price would fall. c. undervalued, so its price would rise. d. undervalued, so its price would fall.
In Figure 32.1, at the market price-quantity combination where production is limited, the consumer surplus is Image
A. APfloorB. B. HP*C. C. HPfloorBG. D. P*AC.