If e = 0.125, c = 0.08, and D = 720, the total demand for high-powered money is
A) 32.4.
B) 3512.20.
C) 572.4.
D) 147.6.
D
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Answer the following statement(s) true (T) or false (F)
1. A market demand curve is a horizontal summation of individual demand curves. 2. A change in a good’s own price leads to shifts in the demand curve. 3. The acronym SPENT can help you remember the five important factors that shift the demand curve for a good or service. 4. Substitutes are generally goods for which one could be used in place of the other.
According to Okun's law, when the output gap is negative, cyclical unemployment:
A. is negative. B. equals structural unemployment. C. is positive. D. equals frictional unemployment.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Which one of the following is an example of asymmetric information?
A. A supermarket repackages packages of stale meat and sells them. B. A homeowner knowingly sells a house that has hidden electrical problems. C. A company hires an employee who has an addiction to sleeping pills. D. All of these