When the opportunity cost of holding money increases, then
A) the quantity of money supplied increases.
B) people want to hold more money.
C) the real interest rate falls.
D) the nominal interest rate falls.
E) people want to hold less money.
E
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Explain what potential conflict exists between shareholders in a corporation and the corporation's managers
What will be an ideal response?
Where there are internal economies of scale, the scale of production possible in a country is constrained by
A) the size of the domestic plus the foreign market. B) the size of the country. C) the size of the trading partner's country. D) the size of the domestic market. E) the size of the foreign market.
The quantity theory of money implies that if the money stock were to double, the price level would
a. fall by one half. b. rise, but only slightly. c. also double. d. be unchanged. e. all of the above.
Which of the following is a microeconomic concern?
A) the rate of economic growth in the United States B) the current unemployment rate in the United States C) consumer behavior D) national output of the United States