Suppose that a sharp downturn in the price of a country's prime manufacturing product results in a terrible recession and a massive decline in the general income level of the citizens. Other things constant, what would be the recession's most probable effect on money demand in the country?
a. People will hold more money for any purpose, resulting in a decline in money demand.
b. Local M1 money demand will rise.
c. The transactions demand for money will fall such that the quantity of money demanded will be lower at any given interest rate level.
d. The speculative demand for money will fall, causing a downward movement along the money demand curve.
e. The precautionary demand for money will increase, causing an upward shift in the money demand curve.
c
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Refer to Figure 13-17. What is the productively efficient output for the firm represented in the diagram?
A) Qf units B) Qg units C) Qh units D) Qj units
Which product is most likely to be the most price elastic?
A. Milk B. Housing C. Clothing D. Automobiles
Policy makers with conservative values usually ask for policy recommendations from:
A. "liberal" economists. B. all economists. C. both "liberal" and "conservative" economists. D. "conservative" economists.
The local Allied Moving Company begins this year with capital equal to $250,000. During the year the firm depreciates $150,000 worth of its capital and ends the year with capital equal to $250,000
Which statement correctly summarizes Allied Moving Company's investment? A) Allied Moving Company made gross investment of $250,000 during the year. B) Allied Moving Company made no net investment during the year. C) Allied Moving Company made no gross investment during the year. D) Allied Moving Company made no capital investment during the year. E) Allied Moving Company made net investment of $150,000 during the year.