As a person's wealth increases we would expect the demand for money to:
A. decrease.
B. not change; money demand does not vary with wealth, only with income.
C. increase dollar for dollar with wealth.
D. increase but at a rate less than dollar for dollar.
Answer: D
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At Rick’s Trailer Trove, Rick’s buddy Theodore convinces him to extend production of trailers beyond the current production level in order to gain more producer surplus. This strategy will work if ______.
a. current production exceeds the equilibrium point b. current production is at the equilibrium point c. the cost of the additional output exceeds what the buyers will pay for it d. the cost of the additional output is less than what the buyers will pay for it
Evidence shows the United States can continue its expansionary fiscal policies without causing a new financial crisis.
Answer the following statement true (T) or false (F)