The precautionary demand for money:
a. varies inversely with the income level.
b. varies inversely with the price level.
c. is used as an insurance agent against unexpected needs.
d. states that nominal income must exceed real income.
e. is a classical concept in monetary theory.
c
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Modern research suggests that colonial Americans experienced positive rates of economic growth but not a high quality of life
Indicate whether the statement is true or false
The consumer price index includes all of the following goods and services except
a. bonds of US corporations b. French wine c. Japanese VCRs d. used cars e. toiletries
Which of the following is defined as the percentage by which the entire set of a nation's trade barriers raises an industry's value added per unit of output?
A. Effective rate of protection B. Revenue effect C. One-dollar, one-vote metric D. Terms-of-trade effect
Answer the following statement true (T) or false (F)
1) If prices received by farmers decline and prices paid by farmers increase, the parity ratio will decline. 2) The Food, Conservation, and Energy Act of 2008 provides three types of agricultural subsidies: direct payments, countercyclical payments, and marketing loans. 3) The federal government has not paid subsidies to farmers since passage of the Freedom to Farm Act in 1996. 4) Environmentalists generally support price supports because these subsidies motivate additional farm production. 5) The principal beneficiaries of government agricultural aid have been the very low-income farmers.