Along an LM curve at higher interest rates there is __________ money demanded, so income must be higher to __________ the demand for transactions balances if the total demand for money is to equal the fixed supply
A) less; decrease
B) less; increase
C) more; decrease
D) more; increase
B
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What can the central bank of Autarkia do to lower the rate which banks charge each other for overnight loans? How will this affect the economy if it is facing a downturn?
What will be an ideal response?
Refer to Figure 9.2. A movement from point b to point a could be caused by a(n)
A) increase in government spending. B) decrease in the price of oil. C) increase in taxes. D) a massive crop failure.
The gaps between the United States and the Asian countries of Honk Kong, Singapore, Korea and China have been
A) decreasing B) increasing C) remaining fairly constant D) there are no gaps between these Asian countries and the United States
Which of the following correctly describes the relationship between the marginal cost and average variable cost curves?
a. MC is everywhere above AVC b. AVC is everywhere above MC c. MC crosses AVC at AVC's minimum point d. MC crosses AVC at MC's minimum point e. both AVC and MC first rise and then fall