The likely effect of introducing an increased number of automatic teller machines is to
A. increase money demand, shifting the LM curve up and to the left.
B. increase money demand, shifting the LM curve down and to the right.
C. decrease money demand, shifting the LM curve up and to the left.
D. decrease money demand, shifting the LM curve down and to the right.
Answer: D
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If the price of pork rinds falls, the substitution effect due to the price change will cause
A) an increase in the quantity of pork rinds demanded. B) a decrease in the quantity of pork rinds demanded. C) an increase in the demand for pork rinds. D) an increase in the demand for corn chips, a substitute for pork rinds.
If Country A's central bank wanted to increase the value of its currency, its reserves account in the balance of payments would:
a. Become more negative. b. Become more positive. c. Not change. d. Change only if there were no offsetting changes in the net errors and omissions account.
Table 30.1Number of workers (per hour)Total output (per hour)Marginal physical product (output per worker)Total revenue (dollars per hour)Marginal revenue product (dollars per hour worker)14---________---210________________________315________________________419________________________522________________________Assume that the product price is $4 per unit and that the hourly wage for workers is $12. Neither price nor wage changes with output. In Table 30.1, the marginal physical product of the third worker hired is
A. 15 units per hour. B. 3 units per hour. C. 4 units per hour. D. 5 units per hour.
Explain the relationship between opportunity costs and money costs. Can they be treated as identical?
What will be an ideal response?