If you believe that the price of U.S. government bonds will soon fall, you will want to increase your speculative money demand
a. True
b. False
Indicate whether the statement is true or false
True
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For a competitive, profit-maximizing firm, the demand curve for labor will shift in response to a change in the
a. wage rate. b. quantity of labor demanded. c. price of the product that the firm sells. d. an increase in the supply of labor.
When interest rates fall in a given economy, it causes firms to borrow __________ funds used for purchasing capital goods. The result will be a(n) ___________ in the level of capital employed in the economy. In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis), this then causes ____________________ which makes the LRAS curve shift
____________ resulting in ______________________. A) more; increase; the production function to shift upward; rightward; economic growth B) less; decrease; the production function to shift downward; leftward; a shrinking economy C) more; increase; a movement up along a given production function; rightward; economic growth D) more; increase; a movement down along a given production function; leftward; a shrinking economy