When the money demand curve is drawn with interest rate on the vertical axis and the quantity of money on the horizontal axis, the slope of the demand curve for money is
A) vertical.
B) horizontal.
C) positive.
D) negative.
Ans: D) negative.
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Which graph in the above figure represents the isoquants where, as the amount of labor used increases and the amount of capital used decreases, the marginal product of labor rises when Capital per day is on the vertical axis and Labor per day is on
the horizontal axis? A) Graph A B) Graph B C) Graph C D) Graph D
A monopolist that does not price discriminate will set the output level where
a. P = MC b. P = MR c. TR = TC d. MR = MC e. P = ATC
If the public takes funds from currency in circulation and deposits them into their checking accounts, the:
a. M1 and M2 money multipliers fall. b. M1 and M2 money multipliers rise. c. M1 and M2 money multipliers do not change. d. M1 money multiplier rises, and the M2 money multiplier falls. e. M1 money multiplier falls, and the M2 money multiplier rises.
Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the price of a doughnut is 25 cents, then at this firm's profit maximizing level of output, the firm will earn an economic ________ of ________ per day.
A. loss; $80 B. loss; $10 C. profit; $80 D. profit; $8