The demand for money to cover unexpected expenditures and to meet emergencies is known as
A. the terminal demand for money.
B. the asset demand for money.
C. the precautionary demand for money.
D. the transactions demand for money.
Answer: C
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If new firms are expected to enter an existing market, ________
A) the market price is likely to fall B) the market demand is likely to increase C) the market supply is likely to fall D) the profits of all firms are likely to increase
Discretionary expenditures are federal government expenditures for programs whose funds are authorized and appropriated by Congress and signed by the President, where explicit decisions are made on the size of the programs
Indicate whether the statement is true or false
For the regression equation Q = 100 - 10X + 0.25X2, which of the following statements is true?
A) X2 is the more important variable because it is positive. B) When X decreases by one unit, Q decreases by 10 units. C) When X increases by 10 units, Q decreases by 1 unit. D) The change in Q associated with a one unit increase in X depends on the initial level of X.
A Monetarist-oriented econometric model is likely to emphasize that monetary policy affects economic activity
A) directly through changes in government spending. B) directly through changes in the money supply. C) indirectly through changes in velocity. D) indirectly through changes in money demand.