According to liquidity preference theory, if the price level increases, then the equilibrium interest rate
a. rises and the aggregate quantity of goods demanded rises.
b. rises and the aggregate quantity of goods demanded falls.
c. falls and the aggregate quantity of goods demanded rises.
d. falls and the aggregate quantity of goods demanded falls.
b
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When airlines overbook a flight and passengers are paid to take a later flight, which category of passenger is most likely to give up their reservations?
A) Passengers not in a hurry B) Poor passengers C) Selfish passengers D) Unselfish passengers E) Wealthy passengers
Whether the minimum wage is a binding price floor always depends upon whether the economy is in a recession
a. True b. False Indicate whether the statement is true or false
With an upward-sloping AS curve, a decrease in transfer payments can lead to a decrease in inflation.
Answer the following statement true (T) or false (F)
All else being equal, if the rate of growth in productivity in Spain is greater than the rate of growth in productivity in the United States, the euro
A) will decrease in value relative the U.S. dollar. B) will nominally depreciate against the dollar, but its real value relative to the dollar will remain unchanged. C) will increase in value relative to the U.S. dollar. D) will nominally appreciate against the dollar, but its real value relative to the dollar will remain unchanged.