If the price level increases, the
A) demand for money decreases.
B) quantity of money demanded increases.
C) quantity of money demanded decreases.
D) demand for money increases.
E) demand for money does not change and the quantity of money demanded does not change.
D
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Answer the following statements true (T) or false (F)
1) If DI is $275 billion and the APC is 0.8, we can conclude that saving is $55 billion. 2) If the MPC is constant at various levels of income, then the APC must also be constant at all of those income levels. 3) The average propensity to consume is defined as income divided by consumption. 4) 1 - MPC = MPS. 5) If the Hennige family's marginal propensity to consume is .70, then it will necessarily consume seven-tenths of its total income.
Refer to Figure 8.5. If the wage rate is $5 and the rental rate of capital is $10, what is the lowest cost of producing 30 units of output?
A. $350
B. $345
C. $250
D. $300