If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, the interest rate will
A. fall, causing households and businesses to hold less money.
B. rise, causing households and businesses to hold more money.
C. fall, causing households and businesses to hold more money.
D. rise, causing households and businesses to hold less money.
Answer: C
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In contrast to competitive firms, single-price monopolies
A) do not have to worry about market demand. B) sell only if demand is inelastic. C) can never incur a loss. D) can make an economic profit indefinitely. E) must take the price that is determined by the market demand and market supply.
In the base year the price index
A) will be between 1 and 100. B) will always equal 100. C) equals 100 times the cost of the market basket in the base year. D) will equal the year.
When money is used as a standard of value, a person is
a) earning more money than before b) purchasing a necessity c) making a final transaction d) making price comparisons among products e) writing a check for groceries
Businesses that fail to account for implicit costs, like the strawberry farmer, Hiroshi Fujishige, who failed to consider the enormous opportunity of selling his property to Disneyland, will
A. Make higher-than-normal profits. B. Make more money when they shut down. C. Have to increase revenues in order to stay in business. D. Go out of business immediately.