In some financial situations, people have a tendency to hold on to their money. Which of the following are the accurate coordinates for this type of situation?
a. i2 moves down and M2 moves to the left
b. i1 moves up and M2 moves to the left
c. i2 moves up and M1 moves to the left
d. i2 moves down and M1 moves to the right
d. i2 moves down and M1 moves to the right
You might also like to view...
CNN announces that bad weather in Central America has greatly reduced the number of cocoa bean plants, and, as a result, it is expected that the price of chocolate will rise in the near future. As a result: a. the current market demand for chocolate will decrease
b. the current market demand for chocolate will increase. c. the current quantity demanded for chocolate will decrease. d. there is no change in the current market for chocolate, but there will be after the current crop of cocoa bean plants is processed into chocolate.
A government-created monopoly arises when
a. government spending in a certain industry gives rise to monopoly power. b. the government exercises its market control by encouraging competition among sellers. c. the government gives a firm the exclusive right to sell some good or service. d. Both a and c are correct.
During the early years of the Great Depression, a study of the money aggregates reveals that the money multiplier:
A. was at an all-time high. B. decreased. C. was constant from 1929 through 1936. D. increased from 1929 right through 1936.
"Last month unemployment fell to 4 percent, its lowest level in years. The economy is growing rapidly, but consumer prices have risen at an annual rate of 10 percent during the last six months." Which of the following policies would be most appropriate under these circumstances?
A. an increase in both government spending and taxes B. an increase in taxes C. a reduction in taxes D. an increase in government spending