The difference between money and income is that
A) money is a flow and income is a stock.
B) money is a stock and income is a flow.
C) there is no difference—money and income are both stocks.
D) there is no difference—money and income are both flows.
B
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John increases his consumption of Good X and Good Y when his income increases. For John
A) Good X and Good Y are substitute goods. B) Good X and Good Y are complement goods. C) Good X is an inferior good. D) Good X and Y are normal goods
While the classical economists believe that the only demand for money is the transactions demand, the Keynesians believe that there is also a
a. precautionary demand and a speculative demand for money b. precautionary demand and a velocity demand for money c. speculative demand and a velocity demand for money d. speculative demand and a quantity demand for money e. precautionary demand and a spending demand for money
Which of the following is true?
a. A budget deficit will reduce the national debt. b. A budget deficit will increase the national debt. c. A balanced budget will increase the national debt. d. A budget surplus will increase the national debt.
Suppose the price of apples decreases from $1.00 to $0.80 each and, as a result, the quantity of apples demanded increases from 800 to 1,000 . Using the midpoint method, the price elasticity of demand for apples in the given price range is
a. 0.22. b. 0.5. c. 1.0. d. 4.5.