The demand for money as a cushion against unexpected contingencies is called the
A) transactions motive.
B) precautionary motive.
C) insurance motive.
D) speculative motive.
B
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The above (incomplete) table provides information about the relationships between labor and various product measures. The average product of the fourth unit of labor
A) exceeds the marginal product of the fourth unit of labor. B) is less than the marginal product of the fourth unit of labor. C) is equal to the marginal product of the fourth unit of labor. D) is equal to 4.0.
Using a change in supply and/or demand, explain the following phenomena:
a. All else constant, gasoline prices are higher in summer than winter months. b. At the same time that the quality of personal computers has been increasing, the price of personal computers has been falling.
During a recession the:
a. actual budget deficit is smaller than the structural budget deficit. b. cyclical budget deficit is larger than the structural budget deficit. c. actual budget deficit is larger than the structural budget deficit. d. structural budget deficit is larger than the cyclical budget deficit. e. none of the above.
Which of the following would most likely cause a nation's currency to depreciate?
a. an increase in domestic real interest rates b. an increase in exports coupled with a decline in imports c. an increase in the nation's inflation rate d. a balance of trade surplus