The relationship between the interest rate and the precautionary demand for money is
A) nonexistent. B) inverse.
C) positive. D) positive sometimes and inverse other times.
B
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Use the following table to answer the next question. The base year is 2007. Hot DogsBaseballsBottles of SodaYearPriceQuantityPriceQuantityPriceQuantity2005$2.00100$5.0050$2.0010020064.001005.001002.0015020076.001005.001002.0020020088.001508.002004.00200200910.0020010.002004.00250Real GDP (constant dollars) for 2005 equals ________.
A. $1500 B. $1050 C. $650 D. $100
Let the marginal leakage rate be 0.5 while the marginal propensity to consume is 0.8. Then a $50 million reduction in autonomous taxes will cause autonomous consumption to ________ and equilibrium income to ________
A) fall by $50 billion; fall by $100 billion B) rise by $50 billion; rise by $100 billion C) fall by $40 billion; fall by $200 billion D) rise by $40 billion; rise by $80 billion
An inspection by an independent external entity of all a company's accounting records and business operations is called
a. a business operations inspection b. an audit c. a financial inspection d. accounting e. fraud
Large budget deficits tend to
A. raise interest rates. B. lower interest rates. C. have no effect on interest rates.