When the money market is drawn with the value of money on the vertical axis, the money demand curve slopes
a. upward, because at higher prices people want to hold more money.
b. downward, because at higher prices people want to hold more money.
c. downward, because at higher price people want to hold less money.
d. upward, because at higher prices people want to hold less money.
b
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Refer to Figure 19.3. At the exchange rate of 90 yen per dollar, the United States is experiencing a
A) balance of payments deficit. B) current account deficit. C) capital account surplus. D) balance of payments surplus.
Refer to Figure 23-2. If the U.S. economy is currently at point K, which of the following could cause it to move to point N?
A) Household wealth declines. B) The price level in the United States falls relative to the price level in other countries. C) The interest rate rises. D) Congress abolishes investment tax incentives.
Regulations are sometimes used to "correct" the failures of a market mechanism
a. True b. False Indicate whether the statement is true or false
A program of protection that results in preserving jobs in certain industries
A. raises average productivity in all sectors of the economy. B. does so at very high cost to consumers of the products from those industries. C. is an efficient way to preserve employment and is cheaper than other forms of maintaining full employment. D. is an effective way of encouraging innovation and improvement in production.