Think of the speculative motive for holding money: As the interest rate decreases from 10 percent to 5 percent, the quantity of money people will hold
a. decreases by some quantity, but not necessarily by 50 percent
b. increases by some quantity, but not necessarily doubles
c. remains unchanged
d. doubles
e. falls by 50 percent
B
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What's the most common way for a central bank to reduce the money supply?
A) Collect higher taxes B) Sell bonds to the public C) Buy bonds from the government D) Buy bonds from the public
Income is considered to be a
A) nontaxable stream of funds. B) flow. C) stock. D) resource.
Which of the following is not considered a factor contributing to economic growth?
a. Growth in the quantity and quality of labor resources used
b. Growth in physical capital inputs (machines, tools, buildings, and inventories)
c. Growth in the money supply relative to the growth of final goods and services
d. Government protection of property rights
The more inelastic the market demand curve or a commodity, the more prices will ________
Fill in the blank(s) with correct word