In the months of November and December, people in the United States hold a larger part of their money in the form of currency because they intend to shop and travel for the holidays. As a result, other things the same, the money supply increases
a. True
b. False
Indicate whether the statement is true or false
False
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Explain the distinction between investment and capital.
What will be an ideal response?
Using the table above, the elasticity of demand is equal to 1 at a price of
A) $8. B) $6. C) $5. D) $3. E) $1.
A. What are the two effects of an increase in the wage rate on an individual's labor supply decision? Briefly explain each effect
b. Explain how a labor supply curve could be backward bending. What will be an ideal response?
If the Federal Reserve raises the real interest rate for any given inflation rate ________
A) investment spending would increase B) it would lead to higher consumption spending and net exports C) the aggregate demand curve would shift to the left D) all of the above E) none of the above