Economists have long pondered the reasons why people hold money. Some reasons seem to be more important than others. Perhaps not among the most important but still a reason why people hold money is for emergency purposes (the idea of having money available for that "rainy day"). Economist refer to that demand for money as
a. precautionary
b. emergency
c. speculative
d. transactions
e. temporary
A
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The U.S. economy of the late 1920s and early 1930s is typically referred to as ________
A) "The Great Depression" B) "The Great Inflation" C) "The Great Moderation" D) all of the above E) none of the above
If we wanted to consider all the money that had been "multiplied" in the economy, we would think about:
A. M2. B. M1. C. hard money. D. None of these.
During a recession, spending on ________ tends to fall more dramatically than spending on ________
A) necessities; luxuries B) durable goods; nondurable goods C) nondurable goods; durable goods D) food; cars
For a monopolist, if total revenue increases as output decreases, then marginal revenue is
A. positive. B. equal to price. C. zero. D. negative.