When the interest rate increases, the quantity demanded of money held to satisfy your
a. speculative motive rises
b. precautionary motive rises
c. transactions motive falls
d. precautionary motive falls
e. speculative motive falls
E
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Explain what economists mean when they apply the rationality assumption
What will be an ideal response?
At the equilibrium price for gasoline:
a. everyone with the desire and the income to buy gasoline at that price can do so. b. surpluses are inevitable c. quantity demanded exceeds the quantity supplied. d. none of the above
If you knew that the intercept for a straight line was 12, and that if the value of the independent variable was 3 the value of the dependent variable would be 18, then the slope of the line would be:
A. 1 B. 2 C. 3 D. 4
Which of the following income maintenance programs is designed to establish nationwide minimum incomes for the aged, the blind, and the disabled?
A. the food stamps program B. the Old-Age Survivors' and Disability Insurance (OASDI) program C. the Supplemental Security Income (SSI) program D. the Temporary Assistance to Needy Families (TANF) program