Over time, the wealth of society increases and payments technologies get more efficient. What is the effect on money demand of these two changes?
A. Money demand rises proportionately to the rise in wealth.
B. The overall effect is ambiguous.
C. Money demand rises, but less than proportionately to the rise in wealth.
D. Money demand declines.
Answer: B
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A. lower; potential B. higher; potential C. higher; higher D. lower; higher
If a firm spends $600 more on advertising, its goal is for the demand curve for its product to shift ________ and its marginal revenue curve to shift ________
A) leftward; rightward B) leftward; leftward C) rightward; leftward D) rightward, rightward
Explain what is meant by marginal product
What will be an ideal response?
With the resources it has, an economy can produce at any point on or outside the production possibilities frontier, but it cannot produce at points inside the frontier
a. True b. False Indicate whether the statement is true or false