People are likely to want to hold more money if the interest rate
a. increases making the opportunity cost of holding money rise.
b. increases making the opportunity cost of holding money fall.
c. decreases making the opportunity cost of holding money rise.
d. decreases making the opportunity cost of holding money fall.
D
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Rent seeking is best defined as attempts
A) by landlords to get tenants. B) to achieve monopoly power and the resulting economic profit. C) by individuals to avoid paying taxes. D) by owners of a monopoly to sell the firm.
How do changes in income tax policies affect aggregate demand?
A) Higher taxes increase corporate investment and aggregate demand. B) Higher taxes reduce disposable income, consumption, and aggregate demand. C) Higher taxes increase aggregate supply and thus increase aggregate demand as well. D) Higher taxes increase disposable income, consumption, and aggregate demand.