According to liquidity preference theory, if the quantity of money demanded is greater than the quantity supplied, then the interest rate will
a. increase and the quantity of money demanded will decrease.
b. increase and the quantity of money demanded will increase.
c. decrease and the quantity of money demanded will decrease.
d. decrease and the quantity of money demanded will increase.
a
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The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10. Which of the following CORRECTLY illustrates the principle of diminishing marginal utility? The fact that
A) the sixth magazine has less marginal utility than the sixth CD. B) Jane's marginal utility per dollar from the second magazine is the same as her marginal utility per dollar from the third CD. C) the marginal utility per dollar from the sixth magazine is less than the total utility from six magazines. D) the marginal utility of the third CD is less than the marginal utility of second CD.
The thrust of government fiscal policy is expansionary when:
(a) Expenditure and taxation are increased. (b) Government expenditure is reduced and taxation is increased. (c) Expenditure and taxation are decreased. (d) Government expenditure is increased and taxation is reduced.
At the Federal Reserve,
a. the nation's monetary and fiscal policies are made by the Federal Open Market Committee, which meets about every six weeks. b. the nation's monetary and fiscal policies are made by the Federal Open Market Committee, which meets twice a year. c. the nation's monetary policy is made by the Federal Open Market Committee, which meets about every six weeks. d. the nation's monetary policy is made by the Federal Open Market Committee, which meets twice a year.
Specialization allows individuals to:
A. become more self-sufficient. B. focus their attention on one aspect of production. C. better understand the entire production process. D. broaden their skill base.