A lower level of income causes the demand for money to ________ and the interest rate to ________, everything else held constant
A) decrease; decrease
B) decrease; increase
C) increase; decrease
D) increase; increase
A
You might also like to view...
A rent ceiling controls the rent portion of the cost of housing but not the search cost. So when the search cost is ________ the rent, some people end up paying a ________ opportunity cost for housing than they would if there were no rent ceiling
A) added to; lower B) subtracted from; higher C) subtracted from; lower D) added to; higher E) equal to; lower
Applying Coase's theorem, if the cost to you from having the airplane seat in front of you reclined is ________ the benefit to the reclining passenger, you should ________
A) greater than; request a payment from the reclining passenger B) less than; request a payment from the reclining passenger C) greater than; make a payment to the reclining passenger D) less than; make a payment to the reclining passenger