According to the Keynesian view, as interest rates fall
a. people will hold more money
b. people will hold less money
c. people will increase interest-yielding asset holdings
d. the quantity demanded of investment goods will fall
e. the economy's aggregate demand will contract
A
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Indicate whether the statement is true or false
Which of the following statements is true about the total utility provided by a good?
a. Total utility can never be negative. b. Total utility is maximized when marginal utility is maximized. c. Total utility continues to increase as more of the good is consumed. d. Total utility is maximized when marginal utility is zero (for total utility > 0). e. Total utility is maximized when marginal utility is zero (for total utility < 0).
If the boat industry produced $20 billion worth of boats, but $50 billion worth of boats were sold to consumers, the decrease in inventory would lead to
a. an increase in the nation's capital b. more individuals investing in the automobile market c. a decrease in the nation's capital stock d. fewer individuals buying cars e. an overestimation of boat production
If excess demand exists in a market, then
a. excess supply will emerge to absorb the excess demand b. the quantity supplied is less than the quantity demanded c. the quantity demanded is less than the quantity supplied d. the equilibrium price will fall e. the price will fall