Holding money to meet unplanned expenditures is
A) the precautionary demand for money. B) the transactions demand for money.
C) the asset demand for money. D) the capital demand for money.
A
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Typically, the most important determinant of private investment in an economy is
A) the inflow of foreign investment. B) the size of the capital account surplus. C) the size of the current account deficit. D) the outflow of private investment. E) the amount of domestic savings.
If a good's demand function is Q = 30 - 3P, then calculate the price elasticity of demand when
a. good price is $3 using the point elasticity formula b. good price is $4 using the point elasticity formula c. good price decreases from $4 to $3, using the arc elasticity formula d. good price is $5, using the point elasticity formula e. good price increases from $4 to $5, using the arc elasticity formula
Which one of the following statements is TRUE?
A. The investment function is positively sloped to reflect the fact that lower interest rates cause more firms to expand their operations. B. The investment function is positively sloped to reflect the fact that higher interest rates cause more people to invest their funds. C. Along a given investment function, lower interest rates result in more investment projects being undertaken. D. Along a given investment function, higher interest rates result in more investment projects being undertaken.
Which of the following will definitely occur when there is a simultaneous decrease in demand and a decrease in supply?
A. an increase in equilibrium quantity B. a decrease in equilibrium price C. an increase in equilibrium price D. a decrease in equilibrium quantity