What type of relationship does the law of demand demonstrate?
A) direct
B) positive
C) inverse
D) static
C
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When graphed, variables that are unrelated are shown by either a horizontal or a vertical line
Indicate whether the statement is true or false
The monetary transmission mechanism that links monetary policy to GDP through real interest rates and investment spending is called the
A) traditional interest-rate channel. B) Tobins' q theory. C) wealth effects. D) cash flow channel.
In Figure 17-3 above, suppose we are working under the assumption of the Lucas model. The Fed has been following an announced policy of "zero money growth for an indefinite period
" Suddenly and without warning it produces positive money growth and a "money surprise." This would result in a movement between points A) A and C. B) A and B. C) D and B. D) D and A. E) A and D.
If a price is demand determined, then
A. the demand curve must be upward sloping. B. the demand curve must be vertical. C. the supply curve must be vertical. D. the supply curve must be horizontal.