The demand for money curve is drawn
A. with interest rates on the horizontal axis, and the curve sloping up since the "price" of holding money varies directly with the interest rate.
B. holding several things constant, including the price level and interest rates.
C. holding several things constant, including GDP and interest rates.
D. with interest rates on the vertical axis and the curve sloping down since lower interest rates mean the "price" of holding money has fallen.
Answer: D
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If the government raises income taxes, then the labor
A) supply curve shifts rightward. B) demand curve shifts leftward. C) demand curve shifts rightward. D) supply curve shifts leftward. E) Both answers B and D are correct.
The use of robots in agriculture is an example of
A) organizational changes leading to increased productivity. B) decreasing returns to scale. C) neutral technical change leading to increases in productivity. D) nonneutral technical progress.
On June 3, 2005, it cost 1.22 U.S. dollars to buy one euro. How many euros did it take to buy one U.S. dollar?
a. 0.82 euros b. 0.88 euros c. 1.22 euros d. 88 euros
Plastic and steel are substitutes in the production of automobiles. If steel prices go up, all other things unchanged:
A) the equilibrium price of plastic will fall. B) the demand curve for plastic will shift to the left. C) the demand curve for plastic will shift to the right. D) the equilibrium quantity of plastic demanded will increase and the equilibrium price will fall.