Use the following diagram of the market for money to answer the next question.
The downward slope of the money demand curve Dm is best explained in terms of the
A. asset demand for money.
B. wealth or real-balances effect.
C. direct or positive relationship between bond prices and interest rates.
D. transactions demand for money.
Answer: A
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A small, one-unit change in value is called a marginal change
Indicate whether the statement is true or false
The long-run aggregate supply curve shifts to the right when there is
A) an increase in the total amount of capital in the economy. B) an increase in the available technology. C) a decrease in the natural rate of unemployment. D) A and B. E) A, B, and C.
The link between the productivity of labor and the standard of living is
A) tenuous and changing. B) inverse. C) that over the long run, consumers as a whole can increase their rate of consumption only by increasing labor productivity. D) that over the long run, consumers' rate of consumption is not related to labor productivity. E) that the productivity of labor grows much more erratically than the standard of living.
Costumarily, economists classify resources in to these major groups:
What will be an ideal response?