What are the three motives for holding money?
A) the medium of exchange motive, the store of value motive, and the unit of account motive
B) the transaction motive, the speculative motive, and the liquidity motive
C) the transaction motive, the investment motive, and the liquidity motive
D) the transaction motive, the speculative motive, and the precautionary motive
Ans: D) the transaction motive, the speculative motive, and the precautionary motive
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When government decides to increase spending, interest rates generally ________ and this change in interest rates ________ investment spending
A) increase; increases B) increase; decreases C) decrease; increases D) decrease; decreases
The economy is considered to be at full employment when
A) the frictional unemployment rate is zero. B) the structural unemployment rate is zero. C) the cyclical unemployment rate is zero. D) the unemployment rate is zero.
Exhibit 3-8 Demand and Supply Data for Video Games ? Price Quantity Demanded of Video Games Quantity Supplied of Video Games $75 400 900 70 450 850 65 500 800 60 550 750 55 600 700 50 650 650 45 700 600 40 750 550 ? In Exhibit 3-8, if there is a shortage of video games of 200 units, the current price of video games must be:
A. $60. B. $55. C. $40. D. $45.
Which of the following groups has the lowest poverty rate?
A. Married-couple families. B. Whites. C. Foreign-born (not citizens). D. Asians.