The money demand curve has a negative slope because
A) lower interest rates cause households and firms to switch from financial assets to money.
B) lower interest rates cause households and firms to switch from money to financial assets.
C) lower interest rates cause households and firms to switch from money to bonds.
D) lower interest rates cause households and firms to switch from money to stocks.
A
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A central bank accepts deposits from
A) the federal government and commercial banks. B) commercial banks and private businesses. C) private businesses and individuals. D) individuals, private businesses, commercial banks, and the federal government.
Which of the following statements best describes economic efficiency?
a. Economic efficiency occurs when all choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will also increase the quantity of another. b. Economic efficiency occurs when no choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will also increase the quantity of another. c. Economic efficiency occurs when all choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will decrease the quantity of another. d. Economic efficiency occurs when no choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will decrease the quantity of another.