The _______ demand for money is holding money in expectation that bond prices and the prices of other assets might change.
A) speculative
B) exchange
C) transactions
D) precautionary
Ans: A) speculative
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In 2005 real personal saving has decreased to ________ of personal disposable income
A) 3.5 B) 4.8 C) 11.2 D) 1.4
Which of the following is NOT a reason given by economists for the failure of Okun's law to account for the rise in unemployment during the recession of 2007-2009?
A) increased willingness among firms to lay off workers during recessions B) a surge in productivity during the recession C) the unusual severity of the recession D) it does not take into account the effect of the stimulus
Every fiscal or monetary action will affect the distribution of output as well as its volume
Indicate whether the statement is true or false
A large grain crop resulting from favorable weather conditions would shift which of the following curves?
a. only aggregate demand b. aggregate demand and short-run aggregate supply c. only short-run aggregate supply d. only long-run aggregate supply