As the price level falls,
A) the purchasing power of cash holdings rises.
B) the purchasing power of cash holdings falls.
C) the purchasing power of cash holdings remains constant.
D) cash holdings turn into dollar-denominated assets.
E) none of the above
A
You might also like to view...
If a country's national government wants to stimulate spending in the economy, it should:
A) decrease taxes and increase government spending. B) increase taxes and decrease government spending. C) increase taxes and government spending. D) decrease taxes and government spending.
Should a monopoly charge low introductory price in a two-period model?
A) Yes, if the extra profit in the second period is greater than the foregone in the first period. B) Yes, if the demand in the second period is greater than the demand in the first period. C) No. The first period profit is counted more. D) No. Profit maximization decisions should be made separately.
Which of the following countries is not a member of The Group of Seven?
A. the United States B. China C. Germany D. Japan
Using supply and demand to model employment discrimination, if women are legally or socially confined to certain professions such as nursing or teaching, then the wage paid to men in other professions will be ________, and the wage paid to women will be ________.
A. inefficiently low; inefficiently high B. inefficiently high; inefficiently low C. inefficiently high; just right D. inefficiently low; inefficiently low