The desire to hold money for transactions purposes arises because:
A. receipts of income and expenditures are not perfectly synchronized.
B. people fear that prices will rise.
C. households want money on hand in case a good financial investment opportunity arises.
D. low interest rates reduce the opportunity cost of holding money.
A. receipts of income and expenditures are not perfectly synchronized.
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When a government taxes the sale of beer, cooperative surplus ________ and society gets ________
A) increases; richer B) increases; poorer C) decreases; richer D) decreases; poorer
In a consumer-oriented economy, the decision to save in order to promote economic growth: a. means a sacrifice of current consumption in order to enhance future consumption. b. must be enforced by high levels of taxation
c. cannot be expected to benefit future generations. d. none of the above.
If Congress passed new laws significantly increasing the regulation of business, this action would tend to:
a. Increase per-unit production costs and shift the aggregate supply curve to the left b. Increase per-unit production costs and shift the aggregate demand curve to the left c. Increase per-unit production costs and shift the aggregate supply curve to the right d. Decrease per-unit production costs and shift the aggregate supply curve to the left
Demand-pull inflation:
A. occurs when total spending in the economy is excessive. B. is measured differently than cost-push inflation. C. can be present even during an economic depression. D. is also called "hyperinflation."