Which of the following is correct?
a. A higher price level shifts money demand rightward.
b. When money demand shifts rightward, the interest rate rises.
c. A higher interest rate reduces the quantity of goods and services demanded.
d. All of the above are correct.
d
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Perfect competition is an ideal market structure
a. True b. False Indicate whether the statement is true or false
An investor who diversifies by purchasing a 50-50 mix of two stocks that are not perfectly positively correlated will find that the standard deviation of the portfolio is:
A. greater than the standard deviation from holding the same balance in only one of these stocks. B. the sum of the standard deviations of the two individual stocks. C. less than the standard deviation from holding the same balance in only one of these stocks. D. greater than the sum of the standard deviations of the individual stocks.
The quantity theory of money argues that, in the long run (real GDP equals potential GDP), the percentage change in money will create an equal percentage change in
What will be an ideal response?
Trade sanctions imposed on Iraq that limited Iraq's production of oil after the 1990 Gulf War on the oil market are best shown graphically with a price ceiling below equilibrium price.
Answer the following statement true (T) or false (F)