The value of money falls as the price level
a. rises, because the number of dollars needed to buy a representative basket of goods rises.
b. rises, because the number of dollars needed to buy a representative basket of goods falls.
c. falls, because the number of dollars needed to buy a representative basket of goods rises.
d. falls, because the number of dollars needed to buy a representative basket of goods falls.
a
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In the presence of asymmetric information, production efficiency is assured when the principal and agent share the profit
Indicate whether the statement is true or false
An incentive conflict is when
a. The agent and the principal have identical incentives b. The agent has different incentives than does the principal c. The agent and the principal neither have any incentives to work hard d. None of the above
Refer to the above table. What is the absolute price elasticity of demand when price changes from $6.00 to $6.50?
A. 0.60 B. 1.00 C. 0.65 D. 1.60
If the market price for a good produced by a price taking firm is $8, the firm's total revenue is
A. downward sloping. B. a flat line at P=$8. C. parabolic. D. an upward sloping line beginning at the origin and having a slope of 8.