An increase in the opportunity cost of holding money creates a ________ the money demand curve and an increase in real GDP creates a ________ the money demand curve
A) leftward shift of; movement down along
B) rightward shift of; movement down along
C) movement up along; leftward shift of
D) movement up along; rightward shift of
D
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If a product is a normal good, then its income elasticity of demand is
A) zero. B) positive. C) negative. D) indeterminate. E) greater than 1.
Refer to the table above. What is the marginal product of the third worker?
A) 60 pairs of shoes B) 68 pairs of shoes C) 112 pairs of shoes D) 180 pairs of shoes
Based on our understanding of the IS-LM model that takes into account dynamics, we know that a reduction in government spending will cause
A) an immediate drop in Y and immediate increase in i. B) an immediate reduction in i and no initial change in Y. C) a gradual reduction in i and gradual reduction in Y. D) a gradual reduction in i and an immediate reduction in Y.
The size of a deadweight loss in a market is reduced by
A) market price being close to marginal cost. B) government legislating a ceiling price. C) government legislating a price floor. D) creative destruction.