Explain how the GDP and the interest rate are related to the transactions demand and asset demand for money.
What will be an ideal response?
The transactions demand for money is believed to have a direct relationship with GDP and the level of income, but is thought to be largely independent of interest-rate fluctuations. The asset demand for money is believed to be largely independent of the level of GDP, but is inversely related to the interest rate.
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The central problem all individuals face is
A) greed. B) insufficient money income. C) scarcity of resources. D) the desire for present enjoyment. E) unequal wealth.
The XYZ Co is hiring salespersons. They will be paid a very attractive hourly rate that is independent of how much they sell. Describe an adverse selection that would take place. Describe a moral hazard that would take place
What will be an ideal response?
The Federal Deposit Insurance Corporation
a. has eliminated bank failures b. insures all demand deposits without limit c. insures a person's demand deposits in any bank up to $100,000 d. insures a person's demand deposits in any bank up to $10,000 e. insures a person's savings and loan deposits in any S&L institution up to $100,000
Quantity TC MC 10 10,000 X 20 25,000 The table above shows a firm's total cost and marginal cost for a range of output. What is X equal to?
a. 1500 b. 1000 c. 35,000 d. 1750 e. 15,000