A 10% decrease in real income usually leads to ________ in money demand.
A. a decrease of less than 10%
B. no change
C. an increase
D. a decrease of 10%
Answer: A
You might also like to view...
How does a competitive firm's demand for labor react to a specific tax on each unit of output it sells?
What will be an ideal response?
With rational expectations, a correctly anticipated policy that would increase AD would lead to: a. higher inflation and lower unemployment in the short run
b. higher inflation and higher unemployment in the short run. c. higher inflation and no change in unemployment in the short run. d. lower inflation and lower unemployment in the short run.
The market system works by getting each person, motivated by his or her own self-interest, to produce products for other people.
Answer the following statement true (T) or false (F)
For baseball memorabilia fans, the baseball with which Hank Aaron hit his 735th career home run is perfectly inelastic in supply and in demand
Indicate whether the statement is true or false