A 5% increase in real income usually leads to ________ in money demand.
A. a decrease
B. a decrease of 5%
C. no change
D. an increase of less than 5%
Answer: D
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Which of the following is the best example of money?
A) share of Intel stock B) checkable deposit C) credit card D) phone card E) gold
Which of the following is true about land rent? a. It is the difference between the payment for using land in production and the cost of such use
b. When the supply curve of land is horizontal, the position of the demand determines rent. c. It is a cost to landowners who rent the use of land. d. When the supply curve of land is vertical, the supply curve determines rent. e. When the supply curve of land is downward sloping, both the demand and supply curves determine rent.
If the marginal propensity to consume in an economy is 0.5, then a $1,000 increase in government spending will increase aggregate demand by $4,000
a. True b. False Indicate whether the statement is true or false
A zero marginal tax rate in welfare programs will make everyone eligible for welfare benefits.
Answer the following statement true (T) or false (F)