Which type of demand for money causes the demand for money curve to slope downward?
A. speculative demand
B. precautionary demand
C. transactions demand
D. foreign-exchange demand
Answer: A
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A tax imposed by a government on imports of a good into a country is called
A) a tariff. B) an import fine. C) an import levy. D) an import quota.
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
The major incentive for cost minimization is the
A. power of shareholders in the company. B. fear of top management by workers. C. discipline imposed by the market system. D. impact on U.S. corporations of taxing by the government.
Which of the following events would unambiguously cause an increase in the equilibrium price of cotton shirts?
a. an increase in the price of wool shirts and a decrease in the price of raw cotton b. a decrease in the price of wool shirts and a decrease in the price of raw cotton c. an increase in the price of wool shirts and an increase in the price of raw cotton d. a decrease in the price of wool shirts and an increase in the price of raw cotton