When the interest rate is considered higher than normal, the speculative demand for money ________, the transaction demand ________
A) increases; decreases
B) decreases; increases
C) remains the same; decreases
D) first increases then decreases; remains the same
B
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A ________ describes the possible moves in a game in sequence and lists the payoffs to each possible combination of moves.
A. decision tree B. payoff matrix C. multi-period game D. game graph
Which of the following is NOT a tool used by the Fed to implement monetary policy?
A. Printing Federal Reserve notes and minting coins B. The discount rate C. The reserve requirement D. Open market operations
If the centrally planned economy of Rowboat dismantles central controls before institutions such as property rights are in place, instability will most likely result
a. True b. False
When the government imposes a price ceiling on a good whose price is too high,
a. an excess supply is created b. supply will increase to meet the demand c. the price ceiling becomes the rationing mechanism d. quantity demanded of the good will fall e. a shortage will arise