Why is the demand for real money balances downward sloping?
A) because the opportunity cost of holding money decreases as interest rates decrease
B) because when the interest rate falls the quantity of money demanded increases
C) because lower interest rates encourage firms and households to increase their money holdings
D) all of the above
E) none of the above
D
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How is scarcity related to competition?
A) Competition is an effect of scarcity. B) Scarcity is an effect of competition. C) Both scarcity and competition are effects of a rationing device. D) Both scarcity and competition are effects of opportunity cost. E) Scarcity produces disutility and competition produces utility.
On a graph of a production possibilities curve, an inefficient point is:
A. necessarily an attainable point. B. possibly an unattainable point. C. necessarily an unattainable point. D. not necessarily an attainable point.
Refer to Exhibit 2-6. Which graph best depicts the consequence of a large-scale natural disaster?
 ANSWER 7.png)
Refer to the information provided in Table 23.9 below to answer the question(s) that follow. Table 23.9
Refer to Table 23.9. Planned investment equals actual investment at
A. all income levels above $300 billion. B. all income levels below $300 billion. C. $500 billion. D. all income levels.