Keynes believed that the precautionary demand for money varied
a. negatively with income.
b. positively with income.
c. negatively with the interest rate.
d. positively with the interest rate.
e. Both b and c
E
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Using trade barriers to address labor standards does all of the following EXCEPT it
A) leads to deadweight losses. B) redistributes income. C) works more effectively for countries that are small relative to the total market. D) potentially makes conditions worse as production moves to the informal sector.
In order to simplify a complex situation, economic models often treat constraints as unalterable
Indicate whether the statement is true or false
Direct controls have traditionally been used heavily to control pollution in the U.S
a. True b. False Indicate whether the statement is true or false
You love peanut butter. You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought, and that this will cause the price of peanuts to double by the end of the year. As a result,
a. your demand for peanut butter will increase, but not until the end of the year. b. your demand for peanut butter increases today. c. your demand for peanut butter decreases as you look for a substitute good. d. you will wait for the price of jelly to change before altering your demand for peanut butter.