Keeping an extra $200 in your checking account to pay for possible car repairs illustrates the
A) speculative demand for money.
B) transfer demand for money.
C) precautionary demand for money.
D) transactions demand for money.
Ans: C) precautionary demand for money.
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In an effort to protect endangered species from the effects of logging in America's national forests, the federal government passes a law prohibiting logging in most of the state of Washington
Which of the figures above best illustrates the effect of this new law? A) Figure A B) Figure B C) Figure C D) Figure D E) None of the above because a prohibition cannot be illustrated using demand and supply figures.
Open market purchase of government securities results in:
A) an increase in bank reserves. B) a decrease in bank reserves. C) an increase in interest rates. D) none of the above.
Explain the main difference between the pay-as-you-go system employed by Social Security and a private pension plan
What will be an ideal response?
The types of games analyzed by the Nash equilibrium are
a. Simultaneous move games b. Sequential move games c. Both of the above d. None of the above