An increase in unemployment benefits is likely to:
a. reduce a person's incentive to look for work
b. reduce the opportunity cost of remaining employed.
c. provide a better safety net for employed families.
d. decrease the tax imposed on consumers.
e. increase the need to accept the first job available after becoming unemployed.
a
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Looking ahead at how the customer is more likely to react, what price should the shopkeeper charge?
a. High price b. Low price c. Offer the good for free d. A compromised price between the high and the low price
Which of the following explains why the demand for money curve reveals an inverse relationship between interest rates and the quantity of money demanded?
a. As interest rates rise, the opportunity cost of holding money rises, and people respond by converting cash or checking account balances into interest-bearing financial investments. b. As interest rates fall, the opportunity cost of holding money rises, and people respond by converting cash or checking account balances into interest-bearing financial investments. c. As interest rates rise, the opportunity cost of holding money falls, and people respond by converting their interest-bearing financial assets into cask or checking account balances. d. As interest rates rise, people find it advantageous to borrow money, which increases the quantity of money demanded.