In a two-asset economy with money and T-bills, the quantity of money that people will want to hold, other things being equal, can be expected to:
a. decrease as real GDP increases.
b. increase as the interest rate decreases.
c. increase as the interest rate increases.
d. all of these.
b
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A drawback in the use of sensitivity analysis in capital budgeting decisions is that it doesn't
A) permit evaluating alternative outcomes. B) provide estimates of net present values. C) assign probability values to outcomes. D) consider different possible rates of discount.
In 1966, the Catholic Church eliminated the centuries-old requirement that members abstain from eating meat on Fridays. Catholics customarily ate fish on Friday. Following the removal of this requirement, it was found that the
A. demand curve for fish shifted to the right. B. demand curve for fish shifted to the left. C. demand for meat decreased. D. price of fish increased.