The aggregate demand for money can be expressed by
A) Md = P × L(R,Y).
B) Md = L × P(R,Y).
C) Md = P × Y(R, L).
D) Md = R × L(P,Y).
E) Md = R × L(R, P).
A
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Refer to Figure 12-4. What is the amount of its total fixed cost?
A) $1,080 B) $1,440 C) $2,520 D) It cannot be determined.
The decrease in investment that occurred as a result of banks being unwilling to lend to businesses after the collapse of the housing bubble caused aggregate:
A. supply to increase. B. demand to increase. C. supply to decrease. D. demand to decrease.
Consider the market for medical doctors. Suppose the opportunity cost of going to medical school decreases for many individuals. Suppose it generally takes about ten years to become a practicing doctor. Holding all else constant, in ten years the equilibrium quantity of doctors will
a. increase. b. decrease. c. not change. d. It is not possible to determine what will happen to the equilibrium quantity.
A________is the change in the amount offered for sale in response to the change in price.
Fill in the blank(s) with the appropriate word(s).