Which of the following is correct?
A. The asset demand for money is downsloping because the opportunity cost of holding
money declines as the interest rate rises.
B. The asset demand for money is downsloping because the opportunity cost of holding
money increases as the interest rate rises.
C. The transactions demand for money is downsloping because the opportunity cost of
holding money varies inversely with the interest rate.
D. The asset demand for money is downsloping because bond prices and the interest rate are
directly related.
B. The asset demand for money is downsloping because the opportunity cost of holding
money increases as the interest rate rises.
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If net interest and net transfers are zero, and a country's exports exceed its imports, the country definitely has ________
A) a current account surplus B) a current account deficit C) a capital and financial account surplus D) an official settlements account surplus
Proponents of ISI assumed that governments
A) were capable of identifying and correcting market failures. B) were capable of identifying and correcting the excesses of economic populists. C) should enact orthodox stabilization plans. D) could control the terms of trade. E) Both A and D.
According to William Baumol, many corporate managers engage in empire-building
Indicate whether the statement is true or false
The ____ the demand curve for a good, the ____ the change in equilibrium quantity after a shift of the supply curve
a. flatter; greater b. flatter; smaller c. farther from the origin at every output level; greater d. farther from the origin at every output level; smaller