A movement upward and to the left along the money demand curve is caused by:
a. an increase in the interest rate
b. a decrease in the interest rate.
c. a decrease in real GDP.
d. an increase in real GDP.
e. an increase in the average price level.
a
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Consumption at points on a steeper part of the indifference curve will reflect a higher marginal rate of substitution than consumption points on a flatter part of the indifference curve
Indicate whether the statement is true or false
The effects of increased inflationary expectations is depicted in a(n)
a. upward shift in the investment curve b. downward shift in the investment curve c. upward shift in the consumption curve d. downward shift in the consumption curve e. move to the right along an existing consumption curve
The money wage rate has little effect on the supply curve. It mainly affects the aggregate demand curve
a. True b. False Indicate whether the statement is true or false
Refer to the figures above. Suppose the graphs represent the demand for use of a local golf course for which there is no significant competition (it has a local monopoly). P denotes the price of a round of golf and Q is the quantity of rounds sold each day. If the left graph represents the demand during weekdays and the right graph the weekend demand, this profit-maximizing golf course should:
A. charge $7 for each round, regardless of the day of the week. B. charge $7 for each round on weekdays, and $10 during the weekend. C. charge $9 for each round, regardless of the day of the week. D. charge $9 for each round on weekdays, and $10 during the weekend.