Government capital consists of
A) money owned by the government.
B) securities owned by the government.
C) the buildings owned by the government in Washington, D.C.
D) long-lived physical assets owned by the government.
D
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As opportunity cost of holding money increases, people can
A) do nothing. B) increase the demand for money but not the quantity of money they hold. C) find a better job. D) try to maximize marginal benefit. E) seek substitutes for money.
Refer to Figure 4-9. As a result of the tax, is there a loss in producer surplus?
A) Yes, because producers are not selling as many units now. B) No, because producers are able to raise the price to cover their tax burden. C) No, because the market reaches a new equilibrium D) No, because the consumer pays the tax.
Using the supply and demand model, what would happen if foreign investors no longer want to loan money to the United States?
a. Interest rates will decrease, and investment will decrease. b. Interest rates will increase, and investment will increase. c. Interest rates will increase, and investment will decrease. d. Interest rates will decrease, and investment will increase.
If the potential money multiplier is 4, a $1 increase in demand deposits can potentially support $4 of demand deposits
Indicate whether the statement is true or false