In the above figure, suppose the economy is initially on the demand for money curve MD1. What is the effect of an increase in financial innovation such as the introduction of ATMs?
A) The demand for money curve would shift rightward to MD2.
B) The demand for money curve would shift leftward to MD0.
C) There would be a movement upward along the demand for money curve MD1.
D) There would be a movement downward along the demand for money curve MD1.
B
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Moving along the aggregate production function shows the relationship between ________, holding all else constant
A) capital input and real GDP B) labor input and real GDP C) labor input, capital input and real GDP D) technology and real GDP
Because of the ________ of vaccinations, economic efficiency would be improved if more people were vaccinated
A) positive externality B) moral hazard C) adverse selection D) negative externality
A difference between a proprietorship and a partnership is that
A) a proprietorship is easy to form while a partnership is hard to form. B) a proprietorship has only one owner while a partnership has only two owners. C) a partnership allows for specialization while a proprietorship does not. D) the profits in a proprietorship are taxed only once while in a partnership they are taxed twice.
In the real world, countries use a mixture of the three basic types of economic systems
a. True b. False Indicate whether the statement is true or false