The demand for money for which the purpose is making unexpected purchases or meeting emergencies is considered to be part of
A. asset demand.
B. transactions demand.
C. savings demand.
D. precautionary demand.
Answer: D
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In the above table, suppose imports = $750 billion and government expenditures = $1,000 billion. Hence investment equals
A) -$500 billion. B) $1,000 billion. C) $500 billion. D) $0.
Historical note: When the railroad displaced water transport as the principal means of long-distance transportation, it sparked massive investment spending not only in the railroad industry, but in secondary industries such as
a. mining, automobiles, and genetic engineering b. steel, computers, and videocassette recorders c. lumber, construction, and aviation d. construction, steel, housing, and semiconductors e. mining, steel, lumber, and construction
A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded
a. True b. False Indicate whether the statement is true or false
Potential output in an economy tends to happen very gradually due to which of the following?
a. changes in interest rates b. changes the labor force c. changes in the supply of money d. none of the above affect potential output