Suppose that banks pay 4 percent interest on checking accounts while U.S. Savings Bonds pay 6 percent interest. Under these conditions
A) no nonmonetary assets are willingly held.
B) a combination of money and nonmonetary assets are willingly held.
C) no money balances are willingly held.
D) we do not have sufficient information to tell whether or not any money balances are willingly held.
B
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In the United States, the typical woman earns about ________ of what the typical man earns
A) 90% B) 80% C) 70% D) 50%
Suppose Sue's buys a good for $60 on eBay. If the consumer surplus from the sale is $25, Sue would have been willing to pay:
a. $35 b. $25. c. $60 d. $85.
Which of the following will always be true when an economy is in long-run equilibrium?
a. The level of prices will be constant (that is, inflation will be zero). b. Actual output will exceed the potential output. c. The actual rate of unemployment will be less than the natural rate of unemployment. d. The output of the economy will correspond with the full-employment output.
One of the widely acknowledged problems with using the consumer price index as a measure of the cost of living is that the CPI
a. fails to account for consumer spending on housing. b. accounts only for consumer spending on food, clothing, and energy. c. fails to account for the fact that consumers spend larger percentages of their incomes on some goods and smaller percentages of their incomes on other goods. d. fails to account for the introduction of new goods.