The quantity of money demanded is the
A) average daily volume of bank account withdrawals.
B) amount that people and businesses choose to hold.
C) fraction of cash holdings in an average investment portfolio.
D) income and volume of profits that people and businesses would like to receive.
E) sum of checkable and savings deposits at banks.
Answer: B) amount that people and businesses choose to hold.
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When government regulations force a natural monopoly to produce where price equals average total cost, social welfare is
a. maximized b. less than it would be without regulation c. greater than it would be without regulation, but it is not maximized d. exactly the same as it would be without regulation e. minimized
Assuming the inner curve is the United States' current production possibilities frontier, which of the following points would eventually lead to the greatest level of economic growth?
A. Point J
B. Point N
C. Point K
D. Point P
The Earned Income Tax Credit is a federal program that
A. provides cash assistance to the nonworking poor. B. provides in-kind assistance to minimum wage workers. C. provides cash assistance to firms that hire single mothers living in poverty. D. increases wages for the working poor. E. increases the wages of minorities.
In 2017, Kara sold her used car to Augi's Used Cars, a local dealership, for $2,000. Augi's then serviced and cleaned the car and sold it to Alex for $3,000. How much would these transactions add to GDP in 2017?
A. $1,000. B. $0 C. $3,000. D. $2,000.