The demand for money curve slopes downward because a rise in the nominal interest rate ________ the opportunity cost of holding money and therefore ________ the quantity of money demanded
A) decreases; decreases
B) increases; decreases
C) decreases; increases
D) increases; does not change
E) increases; increases
B
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Refer to Figure 11-11. In the short run, if the firm sells fewer than 5,000 picture frames per month
A) it should produce with the scale of operation associated with ATCc. B) it should produce with the scale of operation associated with ATCa. C) it should produce with the scale of operation associated with ATCb. D) it will experience constant returns to scale.
Suppose the Bureau of Labor Statistics interviews 194,000 people in its monthly survey: 91,300 are not in the labor force, 94,000 are employed, 6650 are unemployed, and 1,150 are in the armed forces. What is the unemployment rate the BLS announces?
A) 4.95 percent B) 3.94 percent C) 7.0 percent D) 6.55 percent E) 6.48 percent