Which of the following would be expected to increase the demand for U.S. currency?
A. The economy enters a recession.
B. Competition among brokers forces down the commission charge for selling bonds or stocks.
C. Online banking allows customers to transfer funds between checking and stock mutual funds 24 hours a day.
D. Political instability rises dramatically in developing nations.
Answer: D
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
To decide what is meant by enlightened self-interest, behavioral economists will:
A. make their models more mathematically rigorous. B. use the ceteris paribus assumption repeatedly. C. base their models on induction. D. use laboratory and field experiments.
Refer to the information provided in Figure 5.7 below to answer the question(s) that follow.
Figure 5.7The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.Refer to Figure 5.7. Had the demand for pumpkins been perfectly inelastic at Point A, the amount customers would have paid per pumpkin after the imposition of this tax would have been
A. $0. B. $5.50. C. $7.25. D. $8.50.
In forecasting consumer spending using surveys of consumer confidence, research suggests that
A. the forecasts are not improved when using consumer confidence measures. B. the forecasts are improved when using consumer confidence measures for forecasts made during recessions, but not expansions. C. the forecasts are not improved when using consumer confidence measures for forecasts made during expansions, but not recessions. D. the forecasts are improved when using consumer confidence measures.