If the demand for money and the supply of money both decrease, the equilibrium:
A. interest rate will decline, but we cannot predict the change in the equilibrium quantity of money.
B. quantity of money and the equilibrium interest rate will both increase.
C. quantity of money will increase, but we cannot predict the change in the equilibrium interest rate.
D. quantity of money will decline, but we cannot predict the change in the equilibrium interest rate.
Answer: D. quantity of money will decline, but we cannot predict the change in the equilibrium interest rate.
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Which of the following statements about the concept of opportunity cost is true?
A. The opportunity cost of a decision is the cost of all possible alternatives to the good produced. B. Many decisions do not involve an opportunity cost. C. If you have an economics final and an American history final tomorrow, the opportunity cost of studying five hours for your economics exam is the five hours you cannot study for your history exam. D. The opportunity cost of a college education at a school where you have to drive 100 miles per week is the cost and maintenance of owning an automobile to drive to and from school.
According to this Application, which of the following is NOT a strategy that the government can pursue to address the rising cost of federal retirement and health care programs?
A) increase the age at which retirement benefits begin to be paid B) promote government saving and investment to increase real GDP over time C) borrow from the public to finance the programs D) reform the health care system to encourage more competition to reduce health care expenditures
A higher price for oil shifts the # randomize
A. SAS curve leftward. B. LAS curve leftward. C. SAS curve rightward. D. AD curve rightward.
In the short run, a firm should shut down its business if price is less than:
A. ATC. B. AR. C. MC. D. AVC.