Which of the following events would shift money demand to the right?
a. an increase in the interest rate or an increase in the price level
b. an increase in the interest rate, but not an increase in the price level
c. an increase in the price level, but not an increase in the interest rate
d. neither an increase in the interest rate nor an increase in the price level
c
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In the United States, the Federal Reserve pursues an inflation targeting policy of keeping inflation below 2 percent
Indicate whether the statement is true or false
When General Motors pays an outside vendor for auto parts, this is an external cost.
Answer the following statement true (T) or false (F)
Figure 4-6
Grapes can be used for wine or for raisins. Which graph in Figure 4-6 best depicts the effects on the U.S. raisin market of a decrease in purchases of domestic wines?
a.
1
b.
2
c.
3
d.
4
In national income accounting, the value of worn out or obsolete capital is represented by
A) depreciation. B) transfer payments. C) disposable income. D) dividends.