If you believe that the price of U.S. government bonds will soon fall, you will want to increase your speculative money demand
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following statements is true?
A) A decrease in demand causes equilibrium price to fall; the decrease in price then results in a decrease in quantity supplied. B) If both demand and supply increase, there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease. C) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater. D) A decrease in demand causes a decrease in equilibrium price; the decrease in price causes supply to decrease.
Which of the following macroeconomic variables would you include in an index of leading economic indicators?
A) Employment B) Inflation C) Real interest rates D) Residential investment
Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, which of the following is the most profitable price per minute?
A. $0.45 B. $0.49 C. $0.53 D. $0.57
Which of the following questions can be answered by the process of demand side GDP determination?
A. How large is equilibrium GDP? B. What can cause unemployment? C. Is demand side equilibrium consistent with supply side equilibrium? D. Does the economy have inflation?