If the demand function for a particular good is Q = 20 ? 8P, then demand at a price of $1 is:

Which of the following is an argument for tax cuts rather than government spending as a way to promote recovery from a recession?

a. Tax cuts are better suited to direct resources into projects that consumers value more highly than the resources required for their production. b. 100 percent of a tax cut will stimulate aggregate demand, but this will not be the case for an increase in government expenditures. c. Tax cuts will encourage rent seeking; increases in government spending will not. d. Tax cuts will change the structure of aggregate demand more than increases in government spending.

If the interest rate increases, the opportunity cost of holding money __________, and the quantity demanded of money __________

A) does not change; does not change B) increases; also increases C) decreases; increases D) increases; decreases E) decreases; also decreases