Jim has the following assets and liabilities:Credit card balance$2,000Cash$500Government bonds$2,000Stock$5,000Checking$750Car loan balance$5,000Car$15,000 Which of the following actions would decrease Jim's money demand by $200?
A. Jim sells $200 worth of stocks and puts the proceeds in his checking account.
B. Jim writes a check for $200 to pay down his credit card balance.
C. Jim writes a $200 check for cash and holds the cash.
D. Jim sells a $200 government bond and puts the proceeds in his checking account.
Answer: B
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Suppose a perfectly competitive constant-cost industry is in long-run equilibrium when market demand suddenly falls. What happens to the industry in the long run?
a. It experiences no change form the original equilibrium b. It experiences a higher equilibrium price and produces more output c. It experiences a lower equilibrium price but produces more output d. It experiences the same equilibrium price but produces more output e. It experiences the same equilibrium price but produces less output
Which of the following is not necessary for price discrimination to occur?
a. a downward-sloping demand curve facing the firm b. control over price by the firm c. the firm can easily distinguish groups with different price elasticities d. the firm can easily prevent resale of the good by lower-price customers e. economies of scale exist
If consumption expenditures are $200 billion, total investment is $50 billion, government purchases are $40 billion, exports are $45 billion, imports are $40 billion, aggregate expenditures must be:
a. $275 billion. b. $295 billion. c. $320 billion. d. $395 billion.
The Board of Governors of the Federal Reserve serves on a larger policy-making group called the House Banking Committee
Indicate whether the statement is true or false