Keynes's theory of the demand for money is consistent with
A) countercyclical movements in velocity.
B) a constant velocity.
C) procyclical movements in velocity.
D) a relatively stable velocity.
C
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Based on the figure above, which of the following factors could lead the demand curve to shift rightward from D0 to D1?
A) a fall in expected future U.S. exchange rate B) a fall in the U.S. exchange rate C) a rise in the U.S. interest rate D) a rise in the U.S. exchange rate E) a rise in foreign interest rates
Always There Wireless is wireless monopolist in a rural area. There are 200 customers, each of whom has a monthly demand curve for wireless minutes of Qd = 200 - 100P, where P is the per-minute price in dollars and Q is the number of wireless minutes. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, how many minutes will each customer buy each month?
A. 175 B. 200 C. 2 D. 225
As an individual consumes more of a good, the marginal utility of that good declines
a. True b. False Indicate whether the statement is true or false
Recently, there has been talk about reforming the tax system. Some advocate replacing the current income tax with a consumption tax. The income tax taxes interest earned on savings directly, while a consumption tax doesn't. The most likely effect on savings, if there is a shift to the consumption tax, would be to
a. raise interest rates b. shift the supply curve of loanable funds to the left c. encourage higher consumption d. shift the supply curve of loanable funds to the right e. discourage savings