A sustained decrease in an economy's price level is known as deflation
a. True
b. False
Indicate whether the statement is true or false
True
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John gets paid monthly and pays for everything with cash. When he cashes his check he keeps $200 for food, $100 for utilities, $900 for rent, $50 for transportation, $100 for entertainment and $300 for unexpected expenditures
Which of the following statements is TRUE? A) The transactions demand for money is $1,350, the precautionary demand is $300 and the asset demand is $0. B) The transactions demand for money is $350, the precautionary demand is $1,150 and the asset demand is $150. C) The transactions demand for money is $350, the precautionary demand is $950 and the asset demand is $0. D) The transactions demand for money is $450, the precautionary demand is $300 and the asset demand is $900.
Among the factors that create a deadweight loss and inefficiency are
A) minimum wages, but not taxes. B) rent ceilings, but not taxes. C) taxes, but not minimum wages or rent ceilings. D) minimum wages, rent ceilings, and taxes.