Goods X and Y are substitutes. If the price of good Y falls, the marginal revenue product of good X
A) will not change.
B) will shift out.
C) will become more inelastic.
D) will shift in.
D
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The ability of a financial asset to be used to immediately make transactions is called:
A) store of value. B) medium of exchange. C) illiquidity. D) liquidity.
We want money mostly because
A) it makes us happy. B) we can buy goods with it. C) we lengthen the life of our mattress. D) we trust it.
If the Fed pursues a contractionary monetary policy on the open market, which of the following would be the most likely result?
a. appreciation of the dollar b. increase in exports c. decrease in imports d. lower interest rates
One In the News article titled "Everything Is on Sale and That's Not Good" suggests that deflation
A. Harms economic growth due to lower profits, more layoffs, and less spending that create a self-reinforcing cycle. B. Harms the economy because bankruptcies decrease. C. Results in higher interest rates that further slow the economy. D. Harms sellers only, but not buyers since they get better deals without worries of job losses.