Comparing Tobin's model of the speculative demand for money with Keynesian speculative demand
A) both models imply that individuals hold only money or only bonds.
B) the Keynesian model implies individuals diversify their asset holdings, while the Tobin model predicts that individuals hold only money or only bonds.
C) the Tobin model implies individuals diversify their asset holdings, while the Keynesian model predicts that individuals hold only money or only bonds.
D) both models imply that individuals diversify their asset holdings.
C
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As the expected future exchange rate for dollars increases
A) the demand for U.S. dollars increases. B) the supply of U.S. dollars decreases. C) both the demand for U.S. dollars and the supply of U.S. dollars increase D) Both answers A and B are correct.
Following the September 11, 2001, terrorist attacks, the managers of many hotels expected a prolonged period of reduced travel and responded by laying off workers and postponing or canceling new construction
Isadore Sharp, the chairman and CEO of Four Seasons Hotels, decided to A) curtail expansion plans, and by significantly cutting back on expansion was able to maintain the company's market share. B) continue expanding and the company ended up losing significant market share. C) curtail expansion plans and the company ended up losing significant market share. D) continue expanding and was able to maintain or enhance the company's market share.
Everything else held constant, a decrease in net taxes ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
Which of the following measures the effect a price change of a good will have on the desire for another good?
a. equilibrium elasticity of demand b. cross-price elasticity of demand c. revenue elasticity of demand d. income elasticity of demand