Suppose water rates in Podunk rise by 100%. The water consumption in Podunk will tend to
A) remain unchanged, because water is a necessity of life.
B) decrease substantially overnight.
C) decrease more substantially over time, as residents discover substitutes for water.
D) decrease, and therefore lead to a lower price of water.
C
Economics
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Keynesians, monetarists, and classical economists all agree that the transactions demand for money is the demand for money by households for
a. precautionary purposes b. spending purposes c. liquidity purposes d. saving purposes e. investment purposes
Economics
When people like yourself take extra (unbudgeted) money along on an extended trip, economists classify this money as satisfying your
a. speculative motive b. transactions motive c. emergency motive d. precautionary motive e. inflationary motive
Economics