On a money demand diagram with the interest rate on the vertical axis, the real money balance demand schedule would be a vertical line under the assumption that
A) a lower interest rate raises the demand for real money.
B) a lower interest rate lowers the demand for real money balances.
C) the interest rate has no effect on the demand for real money balances.
D) balances.
E) a higher real GDP raises the demand for real money balances.
C
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If Abigail can produce 4 tablets or 3 cellphones in a day, while Jacob can produce 1 tablet or 2 cellphones, then it is correct to state that
A) Abigail has a comparative advantage in producing cellphones. B) Abigail has an absolute advantage in producing tablets but not cellphones. C) Jacob has a comparative advantage in cellphones. D) Jacob has an absolute advantage in cellphones.
The postwar years:
a. ushered in what has been described as an unthinking materialist culture. b. ushered in what has been described as a consumer-oriented society that represented the fulfillment of the American dream. c. featured an unusual deviation from the long-term trend toward smaller families. d. All of the above are correct. e. Only a and b are correct.
The statement that "what this nation needs to promote economic growth is a major tax cut" is an example of:
a. Descriptive economics b. A normative economic statement c. An economic theory d. A positive economic statement
In the circular flow model, rent, wages, interest, and profit paid flow from ________ through ________ to ________
A) firms; goods markets; firms B) households; factor markets; firms C) households; goods markets; firms as payment for goods D) firms; factor markets; households E) firms; goods markets; households