Which of the following would be expected to decrease the demand for money in the U.S.?
A. The economy enters a boom period.
B. Political instability increases dramatically in developing nations.
C. Households fear increasing computer glitches will severely limit their ability to use ATMs.
D. Grocery stores begin to accept credit cards in payment.
Answer: D
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Both the World Bank and the IMF typically
A) charge lower than average loan rates to ensure repayment. B) impose stringent preconditions that the borrowers must meet. C) charge higher than average loan rates. D) make loans for less than 5 years only.
An increase in taxes on labor income shifts the labor supply curve ________, and the ________
A) leftward; after-tax wage rate falls B) rightward; before-tax wage rate rises C) leftward; before-tax wage rate does not change D) leftward; after-tax wage rate rises E) leftward; after-tax wage rate does not change
As the marginal propensity to consume (MPC) increases, the spending multiplier:
a. increases. b. decreases. c. remains constant. d. becomes undefinable.
Which of the following is most likely to be a fixed cost for a business?
A. expenditures on low-skill labor. B. shipping charges for the delivery of products. C. materials costs. D. property taxes on the firm's buildings.