When the price level increases, the real value of people’s money holdings
a. falls, so they buy more.
b. falls, so they buy less.
c. rises, so they buy more.
d. rises, so they buy less.
Ans: b. falls, so they buy less.
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Which branch of economics is most likely to study differences in countries' growth rates?
A. normative economics B. macroeconomics C. experimental economics D. microeconomics
The market for bonds is initially described by the supply of bonds - S0, and the demand for bonds - D0,with the equilibrium price and quantity being P0 and Q0. If the U.S. government's borrowing needs decrease, all other factors constant:
A. Bond supply curve to shift to S1 B. Bond demand curve to shift to D1 C. Bond demand curve to shift to D2 D. Bond supply curve to shift to S2
Very high debt burdens can result in
A) fine tuning. B) automatic stabilizer. C) the structural deficit. D) tax smoothing. E) debt repudiation.
If a product's demand decreases as its supply simultaneously increases, the marginal revenue product curve will
A. shift to the left. B. remain unchanged. C. shift to the right. D. either shift to the left, shift to the right, or remain unchanged depending upon what happens to product price.