The most responsive to interest rate changes is the _______ demand for money.
A. transactions
B. precautionary
C. speculative
C. speculative
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Define the tragedy of the commons. Give three examples of common resources. Briefly explain why common property resources are subject to overuse
What will be an ideal response?
How does the original, simplified Keynesian model compare with modern Keynesian analysis?
A) The original Keynesian model assumed price flexibility whereas the modern analysis does not. B) In both cases, the short-run aggregate supply curve (SRAS) is horizontal. C) Modern analysis shows an upward sloping SRAS to reflect some price flexibility. The original Keynesian model's SRAS is horizontal and assumes sticky prices. D) all of the above
Since 1946, the president of the United States has received guidance from a group comprised of three members and a staff of a few dozen economists known as the
State industries are notoriously poor "incubator" for the development of profit-focused, entrepreneurial persons who may leave the firm to set up their own businesses. This statement is an argument in favor of:
A. free immigration and emigration. B. privatizing state industries. C. central planning. D. free trade.