Using the interest rate as a measure of the opportunity cost of holding money, the demand for money curve
A. slopes downward with respect to the rate of interest.
B. is vertical.
C. is not affected by the price level.
D. slopes upward with respect to the rate of interest.
Answer: A
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A tariff is a tax imposed by a government on
A) imports. B) exports. C) services. D) luxury items.
Which of the following is not a recent development in the agricultural industry in the United States?
a. smaller farms b. extensive use of chemical fertilizers c. decreased number of farms d. increased productivity per farm e. larger output per acre
According to the monetarists, which of the following is true?
A. Instability in the money supply is the primary cause of economic instability. B. A reduction in the money supply will cause consumers to increase spending. C. A reduction in the money supply will cause a proportional reduction in wages and prices, leaving output unchanged. D. A rapid growth rate of the money supply will lead to a rapid growth rate of real GDP.
The majority of American workers are employed in the service sector of the economy.
Answer the following statement true (T) or false (F)