If planned investment is perfectly responsive to changes in the interest rate, the planned investment schedule
A) has a negative slope.
B) is horizontal.
C) is vertical.
D) has a positive slope.
Answer: B) is horizontal.
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What will be an ideal response?
The introduction of satellite television systems would cause the Lerner Index for cable television to
A) become smaller. B) increase. C) change in accordance to the increase in market power of cable TV providers. D) be unchanged.
Keynesians identify three principal motives for demanding money. They are the:
a. transactions demand, precautionary demand, and liquidity motive. b. transactions demand, precautionary demand, and convertibility motive. c. transactions demand, speculative demand, and volatility motive. d. transactions demand, speculative demand, and liquidity motive. e. transactions demand, speculative demand, and precautionary demand.
Which of the following pairs of equations describes the supply and demand curves given in the accompanying demand and supply tables?PriceQuantity SuppliedQuantity Demanded$20040$251040$302040$353040$404040$455040
A. Qs = 2P - 40; Qd = 40, respectively B. Qs = P - 20; Qd = 40, respectively C. Qs = P - 40; Qd = 40P, respectively D. cannot be determined