If there is an increase in income, which of the following is true?
a. The demand for complementary goods decreases.
b. The demand for substitute goods decreases.
c. The demand for normal goods decreases.
d. The demand for normal goods increases.
e. The supply for all goods decreases.
D
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You are putting together a portfolio of assets. The four most important characteristics of the assets you will choose are expected return, time to maturity,
A) risk, and liquidity. B) risk, and collateral C) risk, and reward. D) liquidity, and standard issue size.
Other things constant, which of the following would cause the M2 money supply to decline?
a. an increase in the quantity of U.S. currency held overseas b. a shift of funds from interest-earning checking accounts to money market mutual funds c. a reduction in the general public's holdings of currency outside of banks because debit cards have become more popular and widely accepted d. a shift of funds from money market mutual funds into stock and bond mutual funds because the fees to invest in the latter have declined
Explain how a change in the expected price level would shift the short-run and long-run aggregate-supply curves
According to classical economists, the economy
A) always operates at a point below its institutional production possibilities frontier (PPF). B) always operates close to or on its institutional PPF. C) seldom operates close to or on its institutional PPF. D) never operates close to or on its institutional PPF.