Mary Chestnut reported in her diary that, during the Civil War, she became much less willing to hold "'Confederates," currency issued by the Confederate State of America. Assuming that this change in preferences was widespread in the South, it suggests
A) a reduction in the demand for money and a reduction in velocity.
B) a reduction in the demand for money and an increase in velocity.
C) an increase in the demand for money and a reduction in velocity.
D) an increase in the demand for money and an increase in velocity.
Ans: B) a reduction in the demand for money and an increase in velocity.
You might also like to view...
From the economist's point of view, dividends paid to stockholders are part of a corporation's costs
A) because taxes are paid on a corporation's profits prior to the payment of dividends. B) because they must be included in stockholders' incomes for purposes of personal income taxation. C) insofar as they are contractual obligations. D) insofar as they represent what funds invested in the corporation could have earned elsewhere.
The demand curve for high-skilled labor lies to the right of the demand curve for low-skilled labor because
A) there are more high-skilled workers than low-skilled workers. B) high-skilled workers require more compensation to convince them to work than do low-skilled workers. C) high-skilled labor is more productive than low-skilled labor. D) firms need not be concerned with the minimum wage in the market for high-skilled labor.
In which of the following situations is there most likely to be a monopsony?
A) the market for farm workers in a large rural area B) the market for advertising executives in New York City C) the market for accountants in New York City D) the market for NBA players drafted out of college by one NBA team
A combination of two goods which lies beyond the production possibilities curve indicates: a. underutilization of resources
b. overutilization of resources. c. constant opportunity costs. d. a combination that cannot be produced with existing resources. e. society's most preferred combination of two goods.