If the interest rate rises from 1 percent to 3 percent, the ________ decreases and the opportunity cost of holding money ________
A) demand for money; rises
B) quantity of money demanded; rises
C) quantity of money supplied; rises
D) quantity of money demanded; falls
E) quantity of money supplied; falls
B
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Refer to Figure 18-7. The second highest 20 percent of households
A) earn 24 percent of the society's total income. B) earn 28 percent of the society's total income. C) earn 42 percent of the society's total income. D) earn 72 percent of the society's total income.
Which of the following would cause a decrease in the price of a good?
A) an increasing shift in the supply of a good and no shift in demand B) a decreasing shift in the supply of a good and no shift in demand C) an increasing shift in the demand for good and no shift in supply D) an increasing shift in the demand for good and a decreasing shift in supply
In the balance of payments, the settlement account
a. must exactly offset the net deficit or surplus in the other accounts. b. often exceeds the net deficit or surplus in the other accounts. c. is often less than the net deficit or surplus in the other accounts. d. is unrelated to the net deficit or surplus in the other accounts.
The income elasticity of demand for an addictive substance is always positive
a. True b. False Indicate whether the statement is true or false