When considering the demand for money curve, the interest rate
A. varies negatively with the transactions demand for money.
B. is independent of the opportunity cost of money.
C. will have a positive relationship with the quantity of money demanded.
D. is the price of holding money.
Answer: D
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What happens to your purchasing power if inflation is less than you anticipated?
A) It decreases. B) It won't change much. C) It increases. D) It devalues your net worth.
In the above figure, in order to promote an efficient allocation of resources, the government could grant a subsidy equal to
A) zero. B) $5 per unit. C) $10 per unit. D) $15 per unit.
All economic questions arise from the fact that resources are unlimited
Indicate whether the statement is true or false
In the case of an increase in government spending where the price level varies while the money wage is fixed, output
a. rises and prices fall by more than if the price level was fixed. b. falls and price rise by more than if the price level was fixed. c. rises by more and the price level rises by less than if the price level was fixed. d. and the price level are fixed. e. rises and prices fall by more than if the price level was fixed.