You observe people going to the bank more frequently. Other things the same, this could result...
You observe people going to the bank more frequently. Other things the same, this could result from
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Homework Answers
A) an increase in inflation which increase money demand as more amount of money has to be paid for buying the same bundle of good
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You observe people going to the bank more frequently. Other
things the same, this could result...
Heating Oil prices increase by 46 percent and other things remain the same. As a result,...
Heating Oil prices increase by 46 percent and other things remain the same. As a result, there is O A. More information is needed to determine if the demand for Heating Oil increases or decreases. OB. no change in the quantity of Heating Oil demanded. O C. an increase in the demand for Heating Oil. LOD. a decrease in the quantity of Heating Oil demanded. O E. a decrease in the demand for Heating Oil.
3) The law of demand includes the statement other things being equal." These other things include...
3) The law of demand includes the statement other things being equal." These other things include all of the following EXCEPT A) the price of related goods. B) incomes. tastes D) the price of the good itself. 3) John believes that when the price of a good increases people will purchase more of the good. This statement is A) consistent with the law of supply. B) consistent with the law of demand. referring to money prices. D) inconsistent with the...
28. Other things the same, a government budget deficit a. reduces public saving, but not national saving. (b. red...
28. Other things the same, a government budget deficit a. reduces public saving, but not national saving. (b. reduces national saving, but not public saving. c. reduces both public and national saving. d. reduces neither public saving nor national saving. 30. Other things the same, an increase in taxes with no change in government purchases makes national saving a rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply...
(1) Suppose banks decide to hold more excess reserves relative to deposits. Other things the same,...
(1) Suppose banks decide to hold more excess reserves relative to deposits. Other things the same, this action will cause the: (a) Money supply to fall. To reduce the impact of this, The Central Bank could sell bonds (b) Money supplh to fall. To reduce the impact of this, The Central Bank could buy bonds (c) Money supply to rise. To reduce the impact of this, The Central Bank could sell bonds (d) Money supply to rise. To reduce the...
1. Which list contains only things that would make people want to hold more money? a. Interest rates decrease, the price level increases. b. Interest rates decrease, the price level decreases. c. Interest rates increase, the price le
1. Which list contains only things that would make people want to hold more money? a. Interest rates decrease, the price level increases.b. Interest rates decrease, the price level decreases.c. Interest rates increase, the price level increases.d. Interest rates increase, the price level decreases.
According to the Purchasing Power Parity Theorem and the Quantity Theory of Money, other things being...
According to the Purchasing Power Parity Theorem and the Quantity Theory of Money, other things being equal, which of the following would cause the price of UK pound (r = US$/UKpound) to fall: a) A decrease in U.S. real GDP b) A decrease U.K. inflation rate c) An increase in U.S. inflation rate d) A decrease in U.S. money supply e) a decrease in UK money supply
Trade creates value because: O idle resources are put to use. O people get what they...
Trade creates value because: O idle resources are put to use. O people get what they want. O raw materials are transformed into finished products. O people exchange things they do not want for things they do. How are wealth and economic growth related? Economic growth causes increases in wealth. Increases in wealth help facilitate economic growth. O Wealth and economic growth are negatively related. O Economic growth causes resource depletion and reduces society's wealth. Trade makes people better off...
26. The law of demand states that, other things equal, an increase in
26. The law of demand states that, other things equal, an increase in a. price causes quantity demanded to increase. b. price causes quantity demanded to decrease. c. quantity demanded causes price to increase. d. quantity demanded causes price to decrease. 27. Refer to Figure 4. Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for DVDs in the United States? a. a decrease in the price of DVDs b. a decrease in the price of DVD...
Money Demand According to Liquidity Preference Theery, why is the Money Demand curve downwaed sloping? a...
Money Demand According to Liquidity Preference Theery, why is the Money Demand curve downwaed sloping? a because interest rates rise as the Bank of Canada reduces the quantity of money demanded b. because interest rates fall as the Bank of Canada reduces the Money Supply c because people will want to hold less money as the cost of doing so fals d. because people will want to hold more money as the cost of doing so falls Money Demand and...
9) Which of the following imply a deflation? I. persistently increasing CPI III. positive CPI V....
9) Which of the following imply a deflation? I. persistently increasing CPI III. positive CPI V. persistently lower inflation rate IL. persistently decreasing CPI IV, negative CPI VI. negative inflation rate C) II, IV and VI 10) The quantity theory of money argues that, in the long run (when RGDP stays constant), the percentage change in money will create an equal percentage change in A) velocity B) real GDP C) inflation rate. D) the price level. 11) If velocity is...
Heating Oil prices increase by 46 percent and other things remain the same. As a result, there is O A. More information is needed to determine if the demand for Heating Oil increases or decreases. OB. no change in the quantity of Heating Oil demanded. O C. an increase in the demand for Heating Oil. LOD. a decrease in the quantity of Heating Oil demanded. O E. a decrease in the demand for Heating Oil.
3) The law of demand includes the statement other things being equal." These other things include all of the following EXCEPT A) the price of related goods. B) incomes. tastes D) the price of the good itself. 3) John believes that when the price of a good increases people will purchase more of the good. This statement is A) consistent with the law of supply. B) consistent with the law of demand. referring to money prices. D) inconsistent with the...
28. Other things the same, a government budget deficit a. reduces public saving, but not national saving. (b. reduces national saving, but not public saving. c. reduces both public and national saving. d. reduces neither public saving nor national saving. 30. Other things the same, an increase in taxes with no change in government purchases makes national saving a rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply...
Trade creates value because: O idle resources are put to use. O people get what they want. O raw materials are transformed into finished products. O people exchange things they do not want for things they do. How are wealth and economic growth related? Economic growth causes increases in wealth. Increases in wealth help facilitate economic growth. O Wealth and economic growth are negatively related. O Economic growth causes resource depletion and reduces society's wealth. Trade makes people better off...
Money Demand According to Liquidity Preference Theery, why is the Money Demand curve downwaed sloping? a because interest rates rise as the Bank of Canada reduces the quantity of money demanded b. because interest rates fall as the Bank of Canada reduces the Money Supply c because people will want to hold less money as the cost of doing so fals d. because people will want to hold more money as the cost of doing so falls Money Demand and...
9) Which of the following imply a deflation? I. persistently increasing CPI III. positive CPI V. persistently lower inflation rate IL. persistently decreasing CPI IV, negative CPI VI. negative inflation rate C) II, IV and VI 10) The quantity theory of money argues that, in the long run (when RGDP stays constant), the percentage change in money will create an equal percentage change in A) velocity B) real GDP C) inflation rate. D) the price level. 11) If velocity is...
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