As the nominal interest rate increases, the opportunity cost of holding money ________ and the quantity of money demanded ________

A) decreases; decreases
B) increases; increases
C) decreases; increases
D) increases; decreases
E) increases; does not change because people need money


D

Economics

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The fact that supermarkets, a land-intensive form of organization, have become the dominant form of grocery store in the United States suggests that:

A) there is little or no potential for input substitution in the grocery store business. B) transportation costs are insignificant in the grocery store business. C) land is a relatively inexpensive input in the grocery store business. D) labor is relatively inexpensive in the grocery store business.

Economics

Which of the following are TRUE for discount bonds?

A) A discount bond is bought at par. B) The purchaser receives the face value of the bond at the maturity date. C) U.S. Treasury bonds and notes are examples of discount bonds. D) The purchaser receives the par value at maturity plus any capital gains.

Economics

For a given level of equilibrium GDP, a tight-money/easy-fiscal policy mix compared with easy-money/tight-fiscal policy mix implies a

A) lower interest rate. B) lower level of investment. C) higher level of taxation. D) lower level of government expenditures.

Economics

In the two-sector growth models, the size of the labor force, the proportion of the labor force devoted to research, and the productivity of researchers determine the

A) investment necessary for steady-state growth. B) steady-state capital stock. C) growth rate of labor-augmenting technological change. D) human capital stock.

Economics