Which scenario best exemplifies Gresham’s law?
a. Marla has faith in the value of paper money because she knows it can be exchanged for goods and services.
b. Hiro prefers to invest his money rather than keep it in physical form or in a deposit account.
c. Charlie does not trust banks, so he keeps all his money in the form of physical currency.
d. Indira has silver coins she could use to make a purchase, but she prefers to use paper money.
d. Indira has silver coins she could use to make a purchase, but she prefers to use paper money.
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Either a cut in business taxes or an increase in real interest rates would increase investment and aggregate demand, other things equal
a. True b. False Indicate whether the statement is true or false
Which one of the following will not cause the production possibilities curve to shift outward?
a. increased education b. the construction of a new factory c. more tractors becoming available to farmers d. All of the above cause the production possibilities curve to shift outward.