The classical view believes that ________
A) economies move slowly to their long run equilibrium levels
B) a rise in the quantity of money leads to increases in saving and investment
C) a rise in the quantity of money has no impact on economic activity
D) all of the above
E) none of the above
C
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As more and more businesses accept credit cards, the
A) demand for money decreases. B) supply of money decreases. C) quantity of money demanded decreases. D) demand for money increases. E) quantity of money demanded increases.
The above figure shows the production possibility frontier for a country. Suppose the country is producing at point E. What would be the opportunity cost to increase the production of wine to 9 thousand bottles?
A) 12 tons of rice B) 15 thousand bottles of wine C) 9 thousand bottles of wine D) 3 tons of rice E) Nothing, it is a free lunch.
A socialist economy in theory:
A. requires private ownership of property. B. expects people to be selfish. C. expects people to be altruistic. D. is coordinated by the invisible hand.
The income and wealth gap in the United States has
A. decreased in recent years. B. stayed the same in recent years. C. increased in recent years. D. helped reduce the federal budget deficit.