The demand for money curve is drawn
A) holding several things constant, including the price level and interest rates.
B) with interest rates on the vertical axis and the curve sloping down since lower interest rates mean the "price" of holding money has fallen.
C) holding several things constant, including GDP and interest rates.
D) with interest rates on the horizontal axis, and the curve sloping up since the "price" of holding money varies directly with the interest rate.
B
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Keynes advocated the use of taxation and government spending to influence the level of GDP in the short run
Indicate whether the statement is true or false
What is another name for unemployment caused by difficulties matching workers and jobs?
a. cyclical unemployment b. natural unemployment c. frictional unemployment d. natural unemployment
The adverse effects of rent controls include
A. excessive construction of new rental housing. B. keeping rental rates too high in a normal market. C. increased incentives for people to purchase their own homes. D. reduced incentive to construct new rental housing.
Which of the following statements is not true?
A) Consumer surplus measures the difference between the highest price a consumer is willing to pay for a product and the price she actually pays. B) Marginal benefit is the additional benefit to a consumer from consuming one more unit of a product. C) Consumer surplus measures the net benefit from participating in a market. D) Producer surplus measures the total benefit received by producers from participating in a market.