The opportunity cost of holding money balances increases when:
a. the inflation rate decreases.
b. the interest rate increases.
c. the interest rate decreases.
d. GDP is far from full employment.
b
You might also like to view...
An increase in the supply of labor will, everything else equal,
a. increase the full-employment level of output b. decrease the full-employment level of output c. move the economy from a recession toward full employment d. reduce total employment e. have no impact on total employment
An increase in government spending by $100 would, if the MPC = 0.90, result in an increase in real GDP by:
A. $1,000. B. $9,000. C. $900. D. $190.
The above figure shows a motel engaged in monopolistic competition with other motels. The equilibrium price at this motel is ________ per room
A) $20 B) $30 C) $40 D) $50 E) $10
Money ________ transaction costs, allowing people to specialize in what they do best
A) reduces B) increases C) enhances D) eliminates