Which of the following will most likely cause a decrease in the quantity of money demanded?

A. a decrease in the interest rate
B. an increase in nominal income
C. an increase in the interest rate
D. an increase in the price level


Answer: C

Economics

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If price exceeds average costs under pure competition, ____ firms will enter the industry, supply will ____, and price will be driven ____

a. more; decrease; down b. more; decrease; up c. more; increase; down d. more; increase; up e. none of the above

Economics

GDP includes:

a. the negative attributes from erosion and deforested landscape. b. all quality improvements resulting from higher quality goods replacing inferior goods. c. the cleaning-up expenses associated with pollution. d. the value of leisure time. e. the illegal activities related to the underground economy.

Economics

Under a gold standard,

a. with a balance of payments deficit, interest rates would fall and attract foreign capital. b. a deficit in the balance of payments increased a nation's money supply automatically. c. all currencies were defined in terms of gold. d. when a nation had a deficit in its balance of payments, more gold was flowing in than was flowing out. e. All of the above are correct.

Economics

When someone with no health insurance buys a high deductible health insurance policy

A. the premium for the policy falls below what it would be without the deductible. B. insurance for a large loss is present but small losses are not insured. C. the moral hazard problem is reduced. D. All of these are true.

Economics