The costs of inflation to households and firms due to holding less money and making more frequent trips to the bank are known as
A) seigniorage.
B) menu costs.
C) velocity costs.
D) shoe-leather costs.
D
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Refer to Figure 11-4. Suppose the per-worker production function in the figure above represents the production function for the U.S. economy
If the United States decided to cut its support of university research in half, this would cause a movement from A) B to E. B) B to D. C) B to A. D) B to C.
How would a decrease in the U.S. budget deficit affect the exchange rate in the market for dollars?
A) The exchange rate will not be affected by a change in the budget deficit. B) The exchange rate will decrease. C) The exchange rate will increase. D) The impact of the decrease in the budget deficit on the exchange rate cannot be predicted.
In our consumption function, when disposable income is zero, consumption is
A) a. B) -cT. C) cT. D) -a.
All of the following are non-price determinants of demand except
A) tastes and preferences. B) income. C) technology. D) future expectations.