Credit cards
a. are a method of deferring payment, and people who have credit cards hold less money on average.
b. are a method of deferring payment, and people who have credit cards hold more money on average.
c. are a medium of exchange, and people who have credit cards hold less money on average
d. are a medium of exchange, and people who have credit cards hold more money on average.
a
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The economy is in long-run equilibrium when ________ and ________
A) real GDP equals potential GDP; the unemployment rate equals zero B) the output gap equals zero; the inflation rate equals the target inflation rate and the expected inflation rate C) the output gap is at its maximum; the inflation rate equals the target inflation rate and the expected inflation rate D) the unemployment rate equals the natural rate of unemployment; the inflation rate equals zero
Unprecedented stimulative policies throughout the global economy have sparked debate over the inflationary implications. Defenders of the policies argue that, even if the policies raise inflationary expectations, actual inflation will remain low
Critics charge that current policies are nearly certain to result in excessive inflation. What does the aggregate supply curve have to say?
If the total cost function is TC = 10Q3 - 50Q2 + 1000Q + 500, what is the equation for AFC?
What will be an ideal response?
Which of the following is a reason people choose to hold more cash?
a) Interest rates paid on savings and checking accounts at the bank rise dramatically. b) Consumers have more faith in the stability and safety of the financial system. c) Interest rates paid on savings and checking accounts at the bank are near zero. d) Holding cash becomes less convenient.