Joan has the following assets and liabilities: Credit card balance$1,000Cash$200Government bonds$3,000Checking$1,500Car loan balance$10,000Car$15,000 Which of the following actions would increase Joan's money demand by $100?
A. Joan sells a $100 government bond and puts the proceeds in her checking account.
B. Joan pays $100 cash for a new lamp.
C. Joan writes a check for $100 to pay down her credit card balance.
D. Joan writes a check for $100 to pay down her car loan balance.
Answer: A
You might also like to view...
Restaurants catering to both a lunch and dinner trade are likely to mark their prices up above the cost of the food more for dinner than for lunch because
A) the demand is greater at dinner. B) the demand is less at dinner. C) the demand is less elastic at dinner. D) the demand is more elastic at dinner.
In the above figure, which part corresponds to a fall in the money wage rate?
A) Figure A B) Figure B C) Figure C D) Figure D
Which of the following relationships implies that a firm's short-run cost function is linear?
A) MC = AC B) MC = AVC C) AC = AFC + AVC D) MC > AC
Profit maximization by firms ensures that the equilibrium wage always equals the value of the marginal product of capital
a. True b. False Indicate whether the statement is true or false