In the ________ increases in the supply of money will ________.
A. short run; raise total demand and output
B. long run; raise total demand and output
C. long run; lead to lower prices
D. short run; decrease total demand and output
Answer: A
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The opportunity cost of an economic decision is:
a. the best alternative that was sacrificed. b. the amount of money needed to implement the decision. c. any land, labor, and capital that are wasted. d. all options that were lost due to scarcity.
A university's football stadium is never more than half-full during football games. This indicates
a. the ticket price is above the equilibrium price. b. the ticket price is below the equilibrium price. c. the ticket price is at the equilibrium price. d. nothing about the equilibrium price.
Henry has been thinking about purchasing a corporate bond but is afraid that the bond will lose value. He has decided to hold money instead. This is known as the
A. money balance demand for money. B. transactions demand for money. C. precautionary demand for money. D. asset demand for money.
In a purely competitive industry, each firm:
A. Determines its own price B. Produces a differentiated product C. Can easily enter or exit the industry D. Engages in various forms of nonprice competition