The money demand curve is downward sloping because as the value of money falls people desire to hold a larger quantity of money
a. True
b. False
Indicate whether the statement is true or false
True
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The long-run Phillips curve is ________ curve, and moving along the long-run Phillips curve, an increase in the inflation rate is associated with ________ in the natural unemployment rate
A) a downward sloping; no change B) a vertical; no change C) a downward sloping; a decrease D) a horizontal; no change E) an upward sloping; an increase
We assume that firms, when they are deciding the best rate of output at which to produce
A) try to get the highest price possible. B) want to maximize sales. C) want to minimize costs. D) want to maximize profits.
What is the value of marginal profit at the profit-maximizing output?
If the average propensity to consume is 0.80, then the average propensity to save is
A. 1.20 B. 0.20. C. 0.80. D. 1.25.