When some forms of money start to pay interest, then along with a rise in real output it takes a ________ rise in the market interest rate than before to hold the demand for money equal to its supply, which is to say that the LM curve has become
________. A) larger, steeper
B) larger, flatter
C) smaller, steeper
D) smaller, flatter
A
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When producers do not have to pay the full cost of producing a product, they tend to
A. underproduce the product because of a positive externality. B. underproduce the product because of a negative externality. C. overproduce the product because of a positive externality. D. overproduce the product because of a negative externality.
Figure 7-4
Following a rash of airplane bombs, the airlines have been forced to increase security at a cost of $30 million per year. The number of inspectors and machines does not vary with the number of passengers; the airlines must have sufficient staff available to handle the full-capacity load. Which graph in Figure 7-4 best illustrates the impact of the security expenditures?
A. 1 B. 2 C. 3 D. 4
Regional specialization did not emerge in the colonies due to the small size of the cities and towns
Indicate whether the statement is true or false
The market labor supply curve is usually __________ over the relevant range of market wage rates
a. positively sloped b. negatively sloped c. backward bending d. vertical e. horizontal