Which of the following would be classified as precautionary demand for money?
A. You keep a $1,000 in a money market account because the return is better than a savings account at your bank
B. You put $1,000 in a savings account at your bank for emergencies
C. You put $1,000 in your checking account each month to cover your regular expenses
D. You apply for and receive a credit card with a $1,000 limit
Answer: B
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The long-run average total cost curve:
A. indicates the lowest unit costs achievable when a firm has had sufficient time to alter plant size. B. has a shape that is the inverse of the law of diminishing returns. C. displays declining unit costs so long as output is increasing. D. can be derived by summing horizontally the average total cost curves of all firms in an industry.
A patent on a product gives a firm
A. protection from having the invention copied or stolen for a period of 20 years. B. excessive profits in the long run. C. economies of scale in producing the product. D. the power to impose a tariff on a competing product.
An import quota will make the supply curve for the imported good
A. unitary elastic. B. perfectly inelastic. C. negatively sloped. D. perfectly elastic.
Refer to the Article Summary. If Netflix chose to use Shiller's pricing method
A) consumer surplus, producer surplus, and deadweight loss would all be equal. B) producer surplus would be zero. C) deadweight loss would be maximized. D) consumer surplus would be zero.