How have financial innovations such as direct deposit of paychecks, electronic payment of bills, and automated teller machines (ATMs) affected the velocity of money and the demand for real money balances?
What will be an ideal response?
Because of these innovations, each unit of money is more quickly and easily available for transactions. Each unit of money is transacted more frequently, so velocity is increased. A given volume of transactions can be accomplished with fewer units of money, so the demand for real balances is reduced.
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Which of the following groups of workers would be considered part of the short-run supply of court reporters in the Chicago area-labor market?
a. individuals in the Chicago area who are undergoing training as court reporters b. trained court reporters in Indianapolis who are seeking information about relocating to Chicago c. trained court reporters and individuals undergoing training in the Chicago area d. unemployed, trained court reporters who are seeking work in an alternative field in the Chicago area e. trained court reporters working or seeking work as court reporters in the Chicago area
Consider the market for Hewlett-Packard printers, depicted in the figure to the right, where the supply of HP printers has increased from S1 to S2. What would cause the supply curve for HP printers to shift to the right?
A. a decrease in the price of a substitute in production B. a decrease in the price of an input C. a higher expected future price for HP printers D. both A and B E. all of the above
When the nominal dollar interest rate ________, money demand will ________, and the general price level will ________
A) increases; decrease; increase B) increases; increase; increase C) increases; decrease; decrease D) increases; increase; decrease E) decreases; increase; increase
Suppose many new brands start selling coffee in an economy, increasing the options that consumers have for coffee. This will result in: a. a decrease in the elasticity of demand for every brand of coffee. b. an increase in the elasticity of demand for every brand of coffee. c. zero elasticity of demand for every brand of coffee
d. an infinite elasticity of demand for every brand of coffee.