In the United States, the death rate has been decreasing for a number of reasons. According to the book which is not a reason
a. Decrease in infant mortality
b. Increase in life expectancy
c. Out migration
d. Declining rates of heart disease
C
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The demand for money is downward sloping, because at higher interest rates
A) the opportunity cost of holding money is higher. B) the opportunity cost of holding money is decreasing. C) the opportunity cost of holding money is constant. D) the opportunity cost of holding cash is lower.
Collusion makes firms better off because if they act as a single entity (a cartel) they can reduce output and increase their prices and profits. But some cartels have failed and others are unstable
Which of the following is a reason why cartels often break down? A) Most cartels do not have a dominant strategy. B) Each member of a cartel has an incentive to "cheat" on the collusive agreement by producing more than its share when everyone else sticks with the collusive agreement. C) Members of a cartel may resent having to share their profits equally. D) When a cartel is profitable the amount of competition it faces increases.
Liquidity preference theory indicates that at lower interest rates
A) investment is greater. B) money demand is greater. C) consumption is greater. D) money supply is greater.
Bank capital is equal to
A) the value of the capital originally invested in the bank by its owners. B) the value of everything the bank owns. C) the difference between the value of the bank's assets and the value of its liabilities. D) the value of the buildings and other physical assets the bank owns.