If the interest rate increases, there will be a(n):
a. Decrease in the amount of money held as assets
b. Decrease in the transactions demand for money
c. Increase in the transactions demand for money
d. Increase in the amount of money held as assets
a. Decrease in the amount of money held as assets
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Money has replaced the need to barter, which is:
A. a certain amount of purchasing power that it retains over time. B. something you can use to purchase goods and services. C. something you can directly offer, like any good or service, in exchange for some good or service you want. D. a standard unit of comparison.
Which of the following is a predictable, secondary effect of a sharp increase in gasoline prices?
a. Producers will increase the production of fuel-efficient cars. b. The federal government will place a quota on the number of fuel-efficient cars for sale, thus "forcing" consumers to purchase the gas guzzling vehicles. c. the termination of research on the cost-effectiveness of alternative fuels to power automobiles. d. Producers will increase the production of gas guzzling vehicles.
The crude quantity theory is based on each of these assumptions except that
A. if M rises by a certain percentage, P rises by that same percentage. B. V and Q are constants. C. MV = PQ. D. if M rises by a certain percentage, V will rise by that same percentage.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.