A person puts a $100 bill in the glove compartment of his car in case of an emergency. This is an example of
A. the transaction demand for money.
B. the irrational demand for money.
C. the precautionary demand for money.
D. the emergency investment demand for money.
Answer: C
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The total quantity of goods and services demanded by households, firms, foreigners, and government at varying price levels is:
a. gross domestic product. b. aggregate demand. c. aggregate expenditure. d. total demand. e. total expenditure.
Offering discounts to senior citizens is
A. a philanthropic decision. B. peak-level pricing. C. price discrimination. D. an inefficient practice.
Free trade policies may lead to
A. price increases in world markets. B. some labor sectors experiencing some short-term job loss. C. a decrease in world output. D. none of these.
Only the required reserve ratio determines how much money the Federal Reserve can create.
Answer the following statement true (T) or false (F)