Higher real income ________ the demand for money and a higher price level ________ the demand for money.
A. decreases; increases
B. increases; decreases
C. increases; increases
D. decreases; decreases
Answer: C
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Figure 6-4
In Figure 6-4, total expenditure ____ as price falls from P = 12 to P = 10.
A. falls B. remains constant C. rises D. rises by more than $12
A circular flow model shows the interrelationship between the ________ markets and the ________ markets
A) expenditure; income B) household; goods C) business; household D) goods; factor E) household; factor
A fall in the price level brings a ________ in the real wage rate that ________ profits which leads to ________
A) fall; increases; firms temporarily shutting down B) rise; reduces; firms restarting production C) rise; increases; firms temporarily shutting down D) rise; reduces; firms temporarily shutting down E) rise; increases; firms restarting production
If buyers of a monopolistically competitive product feel the products of different sellers are strongly differentiated, then the demand for each seller's product is
A) relatively elastic. B) relatively inelastic. C) perfectly inelastic. D) perfectly elastic.