In the above figure, suppose the economy is initially on the demand for money curve MD1. What is the effect of an increase in the use of credit cards?
A) The demand for money curve would shift rightward to MD2.
B) The demand for money curve would shift leftward to MD0.
C) There would be a movement upward along the demand for money curve MD1.
D) There would be a movement downward along the demand for money curve MD1.
B
Economics
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Hedonic pricing is used to
A) convert nominal values to real values. B) calculate the difference between nominal GDP and real GDP. C) measure the rate of change in real GDP. D) obtain chain-weight indexes. E) none of the above
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A lump-sum tax means that:
A. the tax only applies to one time period. B. the same amount of tax revenue is collected at each level of GDP. C. tax revenues vary directly with GDP. D. tax revenues vary inversely with GDP.
Economics