An individual would be most likely to increase the amount of money he wants to hold if
a. the price level declines
b. the price level declines and the interest rate increases
c. his real income increases
d. the interest rate increases
e. the interest rate and his real income decrease
C
You might also like to view...
An attempt by a firm to create a monopoly and gain the economic profit from the monopoly is called
A) collusion. B) intrusion. C) profit seeking. D) rent seeking.
What are the infant industry and dumping arguments for protection? Are they correct?
What will be an ideal response?
Economists measure the "openness" of an economy in terms of
A) its immigration policies. B) how often it holds free elections. C) the percentage of foreign-born workers in its labor force. D) how much it trades with other economies.
According to Gordon, which of the following is NOT a plausible explanation for a decrease in the measured growth of capital per worker in the United States after 1973?
A) higher inflation causes overtaxation and discourages saving B) increased labor force participation by women C) slower growth in the capital stock D) lower real wages in response to supply shocks in the 1970s