Holding money to meet unplanned expenditures and emergencies is known as
A) transactions demand.
B) precautionary demand.
C) asset demand.
D) aggregate demand.
B
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If it is said that a currency is overvalued against the dollar, it is meant that:
A) the dollar is worth more of that currency than it would have been under a fixed exchange rate regime. B) the dollar is worth less of that currency than it would have been under a fixed exchange rate regime. C) the dollar is worth less of that currency than it would have been under a flexible exchange rate regime. D) the dollar is worth less of that currency than it would have been under a managed exchange rate regime.
A perfectly competitive furniture-rental firm in Phoenix incurs an economic loss if the average total cost of each rental is
A) greater than the marginal revenue of each rental. B) less than the marginal revenue of each rental. C) equal to the marginal revenue of each rental. D) equal to the price of each rental. E) greater than the average variable cost of each rental.
Below is a student's answer to the question "What is microeconomics?" If you were the instructor, how would you correct the student's answer? "Microeconomics is the study of how government influences the choices made by individuals and bus
and of the performance of the whole national economy."
The rate of unemployment tends to reach the natural rate of unemployment
A. after real Gross Domestic Product (GDP) not longer increases. B. when frictional unemployment and structural unemployment not long exist. C. when the economy returns to the long-run aggregate supply curve. D. only when there are no "rigidities" in the labor market.