The demand curve for money:
A. shows the amount of money balances that individuals and businesses wish to hold at various levels of private investment.
B. reflects the open market operations policy of the Federal Reserve.
C. shows the amount of money that households and businesses wish to hold at various rates of interest.
D. indicates the amount that consumers wish to borrow at a given interest rate.
Answer: C
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An industry's total revenue is $100 million. The above table shows the total revenue of the four largest firms in an industry
a. Calculate this industry's four-firm concentration ratio. b. Is this industry competitive? c. What market type does it most likely represent?
Refer to Figure 2.1. At point E, demand is:
A) completely inelastic. B) inelastic, but not completely inelastic. C) unit elastic. D) elastic, but not infinitely elastic. E) infinitely elastic.
If the demand curve facing the Acme Awl Company is tangent to its average total cost curve, all of the following statements are true except one. Which is the exception?
a. Economic profit is zero. b. A normal profit exists. c. Marginal cost must exceed marginal revenue. d. Acme has excess capacity. e. Firms have no incentive to enter or leave this industry.
If $30 billion in new investment was added to the economy and MPC was 0.90, real GDP would increase by:
a. $30 billion. b. $90 billion. c. $100 billion. d. $210 billion. e. $300 billion.