When there is a liquidity trap, the money demand curve is ________.
A. downward sloping
B. flat
C. upward sloping
D. vertical
Answer: B
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A graph shows that the number of U.S. tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls. The graph shows
A) a direct relationshi
Suppose that Richard has just told you that he would not pay more than $100 dollars for one of his favorite baseball cards. You offer to give him $110 dollars for his card and he refuses. What consumer choice theory or effect explains this result?
A) the endowment effect B) bounded rationality C) bounded self-interest D) bounded will power
Quinn's income to spend each month on two normal goods, bowling or eating out, is $100. It costs $10 to bowl for the night, and it costs $20 for Quinn to eat at a restaurant. Quinn currently consumes four nights of bowling and three meals at a restaurant. If the price of bowling increased to $15, the income effect would predict:
A. Quinn would consume more of each good. B. Quinn would consume less bowling and more meals out. C. Quinn would consume less of each good. D. Quinn would consume more bowling and less meals out.
The poverty threshold is often determined in terms of the expenditure on meals that meet a predetermined nutritional standard
a. True b. False Indicate whether the statement is true or false