All other things unchanged, why does an increase in money demand cause the aggregate demand curve will shift to the left?

A) Because the resulting increase in bond prices reduces consumption spending.
B) Because the resulting decrease in bond interest rate will lead to an increase in the quantity of
investment and net exports.
C) Because the resulting higher interest rate will lead to a lower quantity of investment and net exports.
D) Because the resulting lower interest rate will lead to lower net exports.


Ans: C) Because the resulting higher interest rate will lead to a lower quantity of investment and net exports.

Economics

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What does limited liability mean?

A) The personal assets of the owners cannot be claimed if the business is bankrupt. B) Anybody with a liability against a firm can claim only what their liability refers to. C) The owners of the business are personally responsible for paying expenses incurred by the business. D) Only employees can have a claim on the assets of the business.

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The demand curve shows the relationship between

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Three of the four following questions are indicative of the three fundamental economic questions. Leaving out the irrelevant question, rearrange the three relevant questions in the order an economy must answer them.   - How should hybrid cars be produced?   - Should corn be produced in the North or in the South?  - Who drives hybrid cars?  - Should more hybrid cars and fewer SUVs be produced?

A. 1. Should more hybrid cars and fewer SUVs be produced? 2. Should corn be produced in the North or in the South? 3.  How should hybrid cars be produced? B. 1. Who drives hybrid cars? 2. Should more hybrid cars and fewer SUVs be produced? 3. Should corn be produced in the North or in the South? C. 1. Should more hybrid cars and fewer SUVs be produced? 2. How should hybrid cars be produced/ 3. Who drives hybrid cars D. 1.  How should hybrid cars be produced 2. Should more hybrid cars and fewer SUVs be produced? 3. Should corn be produced in the North or in the South?

Economics

You would expect the price elasticity of demand for transportation generally to be:

A. less than price elasticity of the demand for bus tickets. B. the same as price elasticity of the demand for bus tickets. C. greater than price elasticity of the demand for bus tickets. D. greater than price elasticity of the demand for bus tickets when bus tickets are expensive, but less than price elasticity of the demand for bus tickets when the prices of bus tickets fall.

Economics