The money that households might hold either as money or in interest-bearing assets, depending on the interest rate, is called the:
a. precautionary demand.
b. transactions demand.
c. speculative demand.
d. liquidity motive.
e. investment motive.
c
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Public enterprise is less prevalent in Europe than in the United States
a. True b. False
On a Phillips curve diagram, a decrease in the rate of inflation, other things being equal, is represented by a(n):
A. upward shift of the Phillips curve. B. downward movement along Phillips curve. C. upward movement along the Phillips curve. D. downward shift of the Phillips curve.
The change in output resulting from the addition of one more worker is
A) marginal physical product. B) marginal revenue product. C) average physical product. D) average revenue product.
The debate over how the government should respond to deep economic downturns may be easier to overcome if we focus on infrastructure spending because:
A. we have resolve the debate over infrastructure spending before we do anything else. B. there's broad agreement that the government should increase infrastructure spending. C. insufficient infrastructure spending is the root cause of most economic downturns. D. there's broad agreement that the government should decrease infrastructure spending.