The following table shows Alex's estimated annual benefits of holding different amounts of money. Average money holdingsTotal benefit$700$50$800$59$900$66$1,000$71$1,100$74How much money will Alex hold if the nominal interest rate is 8 percent? (Assume she wants her money holdings to be in multiples of $100.)
A. $900
B. $800
C. $700
D. $1,000
Answer: B
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a. U.S. aggregate demand. b. U.S. aggregate supply. c. German aggregate demand. d. German imports.
When the Fed wants to expand the money supply, it
a. buys government securities. b. sells government securities. c. buys common stock. d. sells common stock.
When it is difficult to assign and enforce property rights,
a. markets result in outcomes that are often inefficient. b. courts can easily negotiate efficient outcomes. c. establishing better property rights is always the best way to deal with environmental problems. d. government regulation can never improve on the outcomes generated by competitive markets.
In Figure 17.3, a decrease in the demand for labor will cause the equilibrium:
A. wage and hours of labor used to increase. B. wage and hours of labor used to decrease. C. wage to increase and hours of labor used to decrease. D. wage to decrease and hours of labor used to increase.