In liquidity preference theory, an increase in the interest rate, other things the same, decreases the quantity of money demanded, but does not shift the money demand curve
a. True
b. False
Indicate whether the statement is true or false
True
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In the United States today, how much gold will the Federal Reserve give you in exchange for $1?
A) 1 ounce of gold B) none C) 1/35th of an ounce of gold D) $1 worth of gold (based on the market price of an ounce of gold at the time you exchange the $1)
The contract curve in an Edgeworth Box diagram illustrates
A) the only efficient allocation of goods among individuals. B) all possible efficient allocations of goods among individuals. C) all equitable distributions of goods among individuals. D) the only equitable distribution of goods among individuals.
Which of the following is true of cost curves?
A) The ATC curve goes through the minimum of the MC curve. B) The AVC curve goes through the minimum of the MC curve. C) The MC curve goes through the minimum of the ATC curve, to the left of the minimum of the AVC curve. D) The MC curve goes through the minimum of the AVC curve, to the right of the minimum of the ATC curve. E) The MC curve goes through the minimum of both the AVC curve and the ATC curve.
Which of the following common experiences provides support for the notion of diminishing marginal utility?
a. regret after switching b. satisfaction after recreation c. debt after spending d. fullness after eating