If the real interest rate falls, people decide to ________ because the opportunity cost of ________
A) decrease their consumption expenditure; consumption has decreased
B) increase their consumption expenditure; consumption has decreased
C) increase their consumption expenditure; saving has decreased
D) save more; saving has decreased
E) None of the above answers is correct.
B
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An individual perfectly competitive firm has a supply curve
A) with a positive slope. B) with a negative slope. C) that is parallel to the quantity axis. D) that has a positive slope at lower output levels and a negative slope at higher output levels.
When you purchase school supplies at the book store using cash, you are using money as a medium of exchange
a. True b. False Indicate whether the statement is true or false
If the price of gasoline rises sharply and the demand for sports utility vehicles falls, then the two goods are
A) complements. B) normal goods. C) substitutes. D) inferior goods.
If you got a birthday gift of a $100 U.S. savings bond, you would have received
a. M1 money b. M2 money c. specie d. near money e. not money