Which of the following statements is true?
a. The speculative demand for money at possible interest rates gives the demand for money curve its upward slope.
b. There is an inverse relationship between the quantity of money demanded and the interest rate.
c. According to the quantity theory of money, any change in the money supply will have no effect on the price level.
d. All of these are true.
b
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"Price gouging," or significant price spikes, are typical caused by
A) a significant increase in consumer demand. B) a significant increase in supplier greed. C) government attempts to impose price caps. D) no systematic relationship between supply and demand.
Which of the following statements supports the passive approach to close a recessionary gap?
a. It is likely that policies will be subject to time lags. b. Prolonged unemployment may cause the economy's potential real GDP to fall. c. Workers' skills may grow rusty during a prolonged recession d. It is likely that unemployed workers will drop out of the labor force. e. Firms may neglect their capital stock during a prolonged recession.
Refer to the diagrams. The case of substitute goods is represented by figure:
A. A.
B. B.
C. C.
D. D.
Which of the following is a game theory strategy for oligopolists to avoid a low-price outcome?
a. Tit-for-tat b. Price leadership c. Cartel d. All of these