When there is a liquidity trap, the money demand curve is ________.

Which of the following is NOT true according to Say's law?

A) Producing goods and services generates the means and the willingness to purchase other goods and services. B) Desired expenditures will always be higher than actual expenditures. C) Supply creates its own demand. D) No overproduction is possible in a market economy in the long run.

Oatmeal is a normal good and cold cereal is a substitute for oatmeal. Raisins are a complement for oatmeal. Which of the following increases the demand for oatmeal?

A) an increase in the price of raisins B) a decrease in income C) a decrease in population D) an increase in the price of cold cereal