If a person withdraws $500 from his/her checking account and holds it as currency, then M1 will ________ and M2 will ________
A) increase; decrease
B) not change; not change
C) not change; increase
D) decrease; increase
E) decrease; decrease
Answer: B
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An inferior good has a ________ elasticity of demand
A) positive income B) negative income C) negative cross D) positive cross E) negative price
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What will be an ideal response?
Advertising never makes sense for an oligopolistic firm.
Answer the following statement true (T) or false (F)
An unemployment rate of zero percent cannot be expected because
A) there are some people who do not want to work. B) there will always be discouraged workers. C) some portion of the labor force will always be between jobs. D) cyclical unemployment will always exist.