The money demand curve has a negative slope because
A) lower interest rates cause households and firms to switch from financial assets to money.
B) lower interest rates cause households and firms to switch from money to financial assets.
C) lower interest rates cause households and firms to switch from money to bonds.
D) lower interest rates cause households and firms to switch from money to stocks.
A
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Injections represent outflows of planned expenditures from the real GDP stream
a. True b. False Indicate whether the statement is true or false
List and describe three of the five different lags that can occur which may impede the effectiveness of the use of fiscal policy
Trade policies
a. affect a country's overall trade balance, but affect all firms and industries the same. b. affect a country's overall trade balance, but affect some firms or industries differently than others. c. do not affect a country's overall trade balance, but affect some firms or industries differently than others. d. do not affect either a country's overall trade balance or specific firms or industries.
Suppose that when the price of a good falls from $12 to $9, the quantity demanded of that good rises from 310 units to 350 units. What is the approximate price elasticity of demand between these two prices?
a. 0.42 b. 2.36 c. 0.68 d. 3.80 e. 1.12