The demand for money will be high in an economy experiencing _____
Fill in the blank(s) with the appropriate word(s).
hyperinflation
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Suppose a whiskey maker advertises its whiskey as follows: "Whiskey that tastes expensive and is expensive." The manufacturer is assuming some customers who buy whiskey
A) have a perfectly inelastic demand for whiskey. B) have a relatively inelastic demand for whiskey. C) want to impress their friends or associates. D) will ignore the law of demand. E) will purchase more at higher than at lower prices.
To reassure investors who were unwilling to buy mortgages in the secondary market, the U.S. Congress used two government sponsored enterprises, Fannie Mae and Freddie Mac, to stand between investors and banks that grant mortgages
Fannie Mae and Freddie Mac A) sell bonds to investors and use the funds to purchase mortgages from banks. B) sell bonds to banks and use the funds to purchase mortgages from investors. C) sell mortgages to banks and use the funds to purchase bonds from investors. D) sell mortgages to investors and use the funds to purchase bonds from banks.
Between the years 1998 and 2001, the U.S. government experienced
A) budget surpluses. B) balanced budgets. C) budget deficits. D) contractionary budget cycles.
A law that restricts plant closings will
A) make the economy more efficient by slowing down the movement of resources to a more optimal rate. B) make the economy more efficient by reducing poor decisions on the part of entrepreneurs. C) prevent resources from flowing to their highest-valued uses. D) allow profits and losses to provide a signaling function.