The quantity of money that households and businesses will demand
a. increases if income falls but decreases if interest rates rise.
b. increases if income falls and increases if interest rates rise.
c. decreases if income falls but increases if interest rates rise.
d. decreases if income falls and decreases if interest rates rise.
D
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When an asset enables people to transfer purchasing power into the future it serves the function of a ________
A) store of value B) unit of account C) means of deferred payment D) medium of exchange
What is a compensating differential?
What will be an ideal response?
The perfectly discriminating monopolist will produce the
(a) quantity at which average cost exceeds marginal revenue. (b) quantity at which marginal cost equals average cost. (c) quantity at which marginal revenue equals marginal cost. (d) quantity and price which is not necessarily profit-maximizing but in the best interest of society at large, even if it means loss.
Has the worry that international trade will cause horrible environmental conditions as companies rush to build factories in countries with low environmental regulation come true?
a. No, multinational companies have built factories to the standards in developed countries. b. No, multinational companies have not built factories in countries with low environmental regulations. c. Yes, multinational companies build factories that pollute much more than their factories in developed countries. d. Yes, multinational companies move their companies to countries with the lowest environmental regulations.