The money demand curve has a
A) positive slope because an increase in the price level increases the quantity of money demanded.
B) negative slope because an increase in the interest rate decreases the quantity of money demanded.
C) negative slope because an increase in the price level decreases the quantity of money demanded.
D) positive slope because an increase in the interest rate increases the quantity of money demanded.
B
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Bill Gates is a founder of Microsoft and the world's richest individual. Suppose Microsoft sells more software and Mr. Gates acquires another billion dollars in wealth
Simultaneously, suppose a burglar whose income is well below average broke into Bill Gates' house and stole a million dollars' worth of antiques. Using the "it's not fair if the rules aren't fair" approach to fairness, is Mr. Gates' acquisition of additional wealth fair? Is the (poor) thief's acquisition fair?
If long-run equilibrium is present in a competitive market, the typical firm in the market will be
a. making economic losses. b. making zero economic profit. c. making economic profit. d. making a rate of return that is higher than the rate earned in other industries. e. both c and d are correct.
Inflation is defined as
a. a period of rising productivity in the economy. b. a period of rising income in the economy. c. an increase in the overall level of output in the economy. d. an increase in the overall level of prices in the economy.
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential