If Miguel expects to earn a higher income next month, he may choose to
a. save more now and spend less of his current income on goods and services.
b. save less now and spend more of his current income on goods and services.
c. decrease his current demand for goods and services.
d. move along his current demand curves for goods and services.
b
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A nation's net exports consist of
A) its exports plus its imports. B) its exports plus all other nation's imports. C) its exports minus its imports. D) its imports plus all other nation's exports.
If the bidders at a first-price auction have true values of $78, $72, $66 and $65, the item will sell for
a. Just above $78 b. Just under $72 c. Just above $72 d. Just above $66
What is the main difference between new Keynesian economists and monetarists? a. Monetarists support a fixed-price model, whereas new Keynesians believe that pricesfluctuate
b. Monetarists reject the idea that government intervention can stabilize the economy,whereas new Keynesians support this notion. c. Monetarists believe that the aggregate supply curve is always horizontal, whereas newKeynesians believe that the aggregate supply curve is always vertical. d. Monetarists believe that an increase in the money supply changes real GDPinstantaneously, whereas new Keynesians assume that economic policy operates witha long and variable lag. e. Monetarists believe that deficit spending helps stimulate economic growth, whereas new Keynesians advocate a balanced budget.
If the interest elasticity of money demand is -0.1, by what percent does money demand change if the nominal interest rate rises from 2% to 3%?
A. -5% B. 0% C. -0.1% D. 5%