In the Keynesian liquidity preference framework, an increase in the interest rate causes the demand curve for money to ________, everything else held constant
A) shift right
B) shift left
C) stay where it is
D) invert
C
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A firm in a perfectly competitive industry
A. is unaffected by the entrance of new firms into the industry, since entering firms affect only the prices they themselves receive. B. always produces more output in the long run than in the short run. C. may choose a different output in the long run than in the short run. D. earns economic profit in the long run but not in the short run.
The foreign exchange market is the market in which:
A. ideas from different countries are exchanged. B. currencies of different countries are bought and sold. C. foreign stocks and bonds are bought and sold. D. foreigners buy U.S. real estate.
Which of the following combinations are unattainable given a consumer's budget line?
a. Combinations that fall inside the budget line b. Combinations on the midpoint of the budget line c. Combinations that fall on the budget line d. Combinations that fall beyond the budget line e. A combination that intersects either of the axes
The law of one price is not expected to hold for:
A. differentiated goods. B. financial assets. C. oil. D. commodity goods.