When the interest rate falls,
a. the opportunity cost of holding money rises
b. people shift out of holding interest-yielding asset holdings into holding money
c. the quantity of money people will hold decreases
d. investment spending decreases
e. real GDP will decrease
B
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For a perfectly competitive firm, the shutdown point is the
A) amount of output at which price equals minimum average variable cost. B) amount of output at which price equals minimum average total cost. C) price at which economic profit is zero. D) price at which total opportunity cost is zero.
In the second circular-flow model of Chapter 2, households have two uses for their total income:
A) consumption and investment. B) consumption and saving. C) saving and investment. D) saving and payment of taxes. E) consumption and payment of taxes.
Suppose the demand for strawberries rises sharply, resulting in an increased price for strawberries. As it relates to strawberry pickers, we could expect the:
A. MRP curve to shift to the right. B. MRP curve to shift to the left. C. MRC curve to shift downward. D. MP curve to shift downward.
Assume that the price of a Bluray player is $50. If Joshua is willing to pay $50 for that Bluray player, his consumer surplus when he buys the BLuray player is:
A. $0. B. $1. C. $10. D. $50.