The precautionary demand for money is the demand for money:
a. for normal transactions purposes.
b. for normal investment purposes.
c. for special stock purchases.
d. to protect against inflation.
e. to cover unexpected events.
e
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The aggregate savings in an economy is $1,750 and the GDP of the economy is $55,000. The savings rate in the economy is:
A) 1.8%. B) 3.15%. C) 10%. D) 8.96%.
An efficiency wage is ________ because the result is ________
A) set below the equilibrium real wage; reduced turnover and more work effort B) set above the equilibrium real wage; reduced turnover and more work effort C) not often used; not much different from minimum wage use D) set above the equilibrium real wage; increased turnover and more work effort E) set above the equilibrium real wage; reduced turnover and less work effort
Arbitrage refers to the act of:
a. buying low in one market and selling high in another market. b. buying high in one market and selling low in another market. c. decreasing the market concentration of a firm in an economy. d. increasing the market power of a firm in an economy.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from
A. B to A. B. C to D. C. B to D. D. A to C.