According to classical economists, the credit market reaches an equilibrium when
A) desired investment equals desired saving.
B) desired investment equals planned changes in aggregate supply.
C) desired investment equals planned investment.
D) planned investment equals government expenditures.
A
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Money provides a way to transfer wealth into the future. This function of money is known as
A) medium of exchange. B) unit of accounting. C) store of value. D) standard of deferred payment.
Which of the following statements correctly differentiates between a monopoly and a perfectly competitive firm?
A) A perfectly competitive firm faces an upward sloping demand curve, whereas a monopoly faces a horizontal demand curve. B) A perfectly competitive firm sets its product price at its marginal cost, whereas a monopoly sets the price above its marginal cost. C) A perfectly competitive firm faces a horizontal demand curve, whereas a monopoly faces an upward sloping demand curve. D) A perfectly competitive firm sets its product price above its marginal cost, whereas a monopoly sets its product price equal to its marginal cost.