During periods of hyperinflation, money does not hold its value; therefore, people hold as little as possible for as short a time as possible. This description implies that the
A. Transactions demand for money has increased.
B. Speculative demand for money has decreased.
C. Portfolio demand for money has decreased.
D. Precautionary demand for money has increased.
Answer: A
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Graphically, cost-push inflation is shown as a ________.
A. rightward shift of the AD curve B. leftward shift of the AS curve C. leftward shift of the AD curve D. rightward shift of the AS curve
Which of the following is NOT included in the M2 definition of money?
A) currency held by banks B) money market mutual fund balances C) savings deposits D) checkable deposits
The supply of public goods must be left to government and nonprofit institutions. Why?
The negative externality in a pesticide or other chemical market
a. is associated mainly with production of the chemical b. is primarily a consumption externality c. should be modeled as a marginal external cost (MEC) d. is appropriately captured by the MSC function