The Baumol-Tobin analysis suggests that a decrease in the brokerage fee for buying and selling bonds will cause the demand for money to ________ and the demand for bonds to ________
A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase
D
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Refer to the above figures. Which panel represents the expected relationship between tax revenue and the sales tax rate if static tax analysis is used?
A) Panel 1 B) Panel 2 C) Panel 3 D) Panel 4
Which of the following is NOT a reason why countries trade goods with one another?
a. differences in technology used in different countries b. differences in countries' total amount of resources c. the proximity of countries to one another d. differences in countries' languages and cultures
The equation of exchange is an ________ while the quantity theory of money is a theory that ________.
A. accounting identity; assumes velocity is held constant B. accounting theory; economists use to explain changes in real Gross Domestic Product (GDP) C. accounting identity; assumes the money supply is constant D. accounting theory; assumes the price level is constant
The costs of the actual bargaining process are called
A) search costs. B) collectivization costs. C) negotiation costs. D) monitoring and enforcement costs.