The demand for money ________ when the ________
A) increases; nominal interest rate increases
B) decreases; price level increases
C) increases; supply of money decreases
D) remains constant; price level increases
E) increases; price level increases
E
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A company draws its total cost curve and total revenue curve on the same graph. If the firm wishes to maximize profits, it will select the output at which the
A. vertical distance between the two curves is greatest. B. total cost curve cuts the total revenue curve. C. horizontal distance between the two curves is greatest. D. slope of the total revenue curve is greatest.
The figure below shows a firm that has two plants. Plant 1 has a marginal cost curve of mc1, plant 2 has a marginal cost curve of mc2, and the overall marginal cost curve is MC. Managers maximize their profit by producing ________ units at plant 1 and ________ units at plant 2.
A) 2 million; 4 million
B) 0; 5 million
C) 4 million; 5 million
D) None of the above answers is correct.
Katrina pays $40 for a meal at a fancy restaurant. The ingredients used cost $10 . The value added by the restaurant is _____
a. $30 b. $40 c. $70 d. $40 plus the wages paid to the chef and waiters e. $40 plus the profit earned by the restaurant owner
Suppose a professor gives up her teaching job to devote her time to writing textbooks. If salaries of professors rise,
a. her accounting profit will rise. b. her accounting profit will fall. c. her explicit costs will rise. d. her economic profit from textbooks will fall. e. her economic profit from textbooks will rise.