A major difference between the transactions demand for money and the precautionary demand is that the
A) transactions demand is for emergencies while the precautionary demand is for every day expenditures.
B) transactions demand involves expected expenditures while the precautionary demand involves unexpected expenditures.
C) transactions demand means that people are foregoing interest but they are not foregoing interest in the precautionary demand.
D) transactions demand leads to the purchase of assets while the precautionary demand does not.
B
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The major coordination tasks can be summarized with the questions
A. who, what, when, where. B. how, what, for whom. C. how, what, why. D. how, why, for whom. E. who, how, what.
Frictional unemployment would increase when
A) migrant workers are unemployed after harvest season. B) the number of individuals who quit one job to find another increases. C) discouraged workers drop out of the work force. D) workers are replaced by machines in production.
Deciding if a power company will generate electricity from wind power or coal answers the economic question of:
A. "Who consumes the products produced?" B. "What products will be produced?" C. "Where will the products be consumed?" D. "How will the products be produced.?"
When we say the cost of living has gone down, we mean that, looking broadly over a range of goods and services:
A. our income has increased to match the cost of those goods. B. a dollar buys less today than it used to buy. C. a dollar buys the same today as it used to buy. D. a dollar buys more today than it used to buy.