Higher nominal interest rates ________ the amount of money demanded and a higher price level ________ the amount of money demanded.
A. increase; decreases
B. increase; increases
C. decrease; decreases
D. decrease; increases
Answer: D
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The response in quantity demanded to a price increase in subway rides:
A. will be more elastic in six weeks than in six months. B. will be less elastic in six weeks than in six months. C. will be the same over that time period. D. is unpredictable without more information.
John is willing to sell his car for $3,000 . If the market price of the car is $5,000 . the producer surplus that John will receive is _____
a. $2,000 b. $3,000 c. $5,000 d. $8,000
The price paid for the use of borrowed money:
a. Ponzi payment b. deed bond c. interest d. millage note
Response to the energy crisis of the early 1970s did not include
a. gasoline "rationing by waiting." b. gasoline "rationing by price." c. increased bureaucratic involvement. d. Americans insulating their homes.