The demand for money is downward sloping, because at higher interest rates
A. the opportunity cost of holding cash is lower.
B. the opportunity cost of holding money is decreasing.
C. the opportunity cost of holding money is higher.
D. the opportunity cost of holding money is constant.
Answer: C
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Refer to the scenario above. Arthur should place a bid of ________
A) $187.50 B) $200 C) $225 D) $250
If firms in a competitive market are ________ then there is ________ for firms to ________ the industry
A) incurring economic losses; an incentive; exit B) incurring economic losses; no incentive; exit C) making economic profits; no incentive; enter D) making zero economic profit; an incentive; exit
Assume that autonomous expenditures in an economy decreased by $10 billion. What is the change in aggregate demand at a given price level if the MPC is 0.5?
a. increase by $50 billion b. increase by $10 billion c. decrease by $20 billion d. decrease by $10 billion
Market equilibrium occurs at that price for which
a. quantity supplied equals quantity demanded b. cost equals the wages to labor c. the surplus quantity drives increased demand d. quantity supplied exceeds quantity demanded e. quantity supplied is less than quantity demanded