The demand for money curve shows
A) the quantity of money demanded at each interest rate, holding all other determinants unchanged.
B) the quantity of money made available by the Federal Reserves, holding all other determinants
unchanged.
C) the quantity of money demanded at each bond price, holding all other determinants unchanged.
D) the quantity of money demanded at price level, holding all other determinants unchanged.
Ans: A) the quantity of money demanded at each interest rate, holding all other determinants unchanged.
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Which of the following generalizations is correct? Demand tends to be
A. relatively more inelastic for a product considered a necessity. B. relatively more inelastic when more substitutes are available for a product. C. relatively more inelastic the more time consumers have to respond to price changes. D. relatively more elastic when the price of a good or service, as a proportion of income, is smaller.
Price ceilings set below the equilibrium price cause
A) shortages. B) surpluses. C) a new market equilibrium. D) a greater number of exchanges.
A bank's reserves include
A) the cash in its vault plus the value of its depositors' accounts. B) the cash in its vault plus its deposits held at a Federal Reserve bank. C) the cash in its vault plus any gold held for the bank at Fort Knox. D) its common stock holdings, the cash in its vault, and any deposits at a Federal Reserve bank.
In an economic model of consumer behavior, rational self-interest would likely be
a. a key variable b. the hypothesis of the model c. a behavioral assumption d. a prediction of the model e. a method of testing the model