When the nominal interest rate falls, the opportunity cost of holding money
A) decreases and there is a movement downward along the demand for money curve.
B) increases and there is a movement upward along the demand for money curve.
C) decreases and the demand for money curve shifts rightward.
D) increases and the demand for money curve shifts rightward.
E) decreases and the demand for money curve shifts leftward.
A
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A good is path dependent when
A) it can only be used in one way. B) people who move location follow the path of people who moved before them. C) consumers get utility from consuming goods that others are consuming, such as restaurants. D) the first technology that was adopted has an advantage over a better technology that came later.
The government can _______________ change an inefficient market outcome (in the case where there is a negative externality) into an efficient outcome by imposing a tax on the activity that generates the negative externality
A) in almost all situations B) possibly C) not D) in all situations E) a or d