The demand for money is:
A. limited by the amount of currency printed by the government.
B. unlimited, since people want to hold as much money as possible.
C. the amount of income an individual chooses to hold in the form of money.
D. the amount of wealth an individual chooses to hold in the form of money.
Answer: D
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If your real income falls during a period of inflation, then your nominal income might have
A) increased more rapidly than the price level. B) increased at the same rate as the price level. C) increased more slowly than the price level. D) decreased more slowly than the price level. E) More information is needed to determine if your nominal income increased more slowly, more rapidly, or at the same rate as the price level.
Generalizing using statistical discrimination is:
A. an irrational response and always leads to loss of surplus. B. a rational response to being on the wrong end of an information asymmetry. C. a rational response, although government always steps in to prevent it. D. All of these statements are true.
Regarding government intervention in the economy, which of the following statements is not true? a. Liberals tend to favor intervention
b. Conservatives are inclined to adhere to fixed rules. c. There is no guarantee that government intervention will have the desired effect. d. The effect of government actions on interest rates and spending is unknown. e. All of the above are true.
A firm cannot price discriminate if it
a. has perfect information about consumer demand. b. operates in a competitive market. c. faces a downward-sloping demand curve. d. is regulated by the government.