The demand for money curve slopes downward because a rise in the nominal interest rate ________ the opportunity cost of holding money and therefore ________ the quantity of money demanded
A) decreases; decreases
B) increases; decreases
C) decreases; increases
D) increases; does not change
E) increases; increases
B
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If demand is ________, a price cut ________ the total revenue
A) elastic; increases B) unit elastic; decreases C) inelastic; increases D) inelastic; does not change E) normal; decreases
In the long run in perfectly competitive markets, individual firms will operate at very different output levels
a. True. b. False.
Changes in which of the following will cause a change in exchange rates?
A) real interest rates B) consumer preferences C) perceptions of economic and political stability D) all of the above
The following are hypothetical exchange rates: 2 euros = 1 pound; $1 = 2 pounds. We can conclude that:
A. $1 = 4 euros. B. $1 = .5 euro. C. 1 euro = $.50. D. 1 euro = $2.