Which of the following does not reflect a positive rate of time preference?
a. People are willing to pay high prices to see new movies at first-run theaters.
b. A bank pays interest on savings accounts.
c. Ed puts money in his mattress for a rainy day.
d. Dry cleaners that provide faster service can charge more.
e. A college freshman parties all semester, then stays awake studying for 50 straight hours during final exam week.
C
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Demands differ from wants because
A) demands are unlimited, whereas wants are limited by income. B) wants require a plan to acquire a good but demands require no such plan. C) wants imply a decision about which demands to satisfy, while demands involve no specific plan to acquire the good. D) demands reflect a decision about which wants to satisfy and a plan to buy the good, while wants are unlimited and involve no specific plan to acquire the good.
An increase in interest rates will immediately shift
A. aggregate supply to the right. B. aggregate demand to the left. C. aggregate demand to the right. D. aggregate supply to the left.
The table shows the aggregate demand and aggregate supply schedule for a hypothetical economy.Real Domestic Output Demanded (in Billions)Price Level (Index Value)Real Domestic Output Supplied (in Billions)$3,000350$9,0004,0003008,0005,0002507,0006,0002006,0007,0001505,0008,0001004,000Refer to the above table. If the quantity of real domestic output demanded increased by $2000 at each price level, the new equilibrium price level and quantity of real domestic output would be:
A. 350 and $8000. B. 300 and $8000. C. 200 and $6000. D. 250 and $7000.
In the United Kingdom, regulation of the financial system is concentrated in two agencies. They are:
A. The Financial Conduct Authority and the Bank of England. B. The Financial Conduct Authority and English Banking Authority. C. The Bank of England and the U.K. Treasury. D. The Federal Deposit Insurance Conglomerate and the Bank of England.