Why do people hold money (currency and checking account balances), and thereby forgo earning interest or dividends from a financial investment?
a. Some money is demanded for everyday transactions like parking fees, lunch, and buying groceries.
b. Some money is demanded as a precaution against unexpected costs such as automobile repairs, speeding tickets, or temporary loss of a job.
c. Some money is demanded for speculative purchases of stocks, bonds, or collectibles in case they become available at a particularly low price.
d. All of the above are correct.
d
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a. quantity of labor available b. quantity of capital goods available c. quality of labor available d. quality of capital goods available e. use of energy
Since 1990, the average number of hours worked per year has
A. Increased. B. Stayed about the same. C. Decreased.
Which of the following will most likely occur in the short run if long-run equilibrium is disturbed by an unanticipated decrease in aggregate demand?
What will be an ideal response?
According to the AS/AD model, in the short run an increase in the federal funds rate will
What will be an ideal response?