The Keynesian theory of money demand emphasizes the importance of
A) a constant velocity.
B) irrational behavior on the part of some economic agents.
C) interest rates on the demand for money.
D) expectations.
C
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Other things constant, an increase in the real interest rate will
a. cause consumers to reduce their purchases of durable items like appliances and automobiles. b. induce businesses to increase their level of investment. c. make borrowing money more attractive. d. increase the natural rate of unemployment.
Multiple regression analysis typically requires several computers.
A. True B. False C. Uncertain
Refer to the above figure. Average variable costs are represented by curve
A. 1. B. 2. C. 3. D. 4.
The Specialty Cake Store, a monopolistically competitive firm, is producing 200 decorated cakes per day and selling each cake for $17. At that production level, ATC is $20, AVC is $15, AFC is $5, and both MR and MC are $8. This firm should
A. decrease output to the point where price equals average total cost. B. increase output to the point where price equals marginal cost. C. continue to produce 200 cakes, as price is greater than AVC. D. shut down and produce zero cakes and just pay fixed costs.