Nominal demand for money and benefit of holding money

Assignment Help Microeconomics
Reference no: EM13685503

1. A benefit of holding money (cash) is ____, while the opportunity cost of holding money is ____.

1) Its usefulness as a store of value; lost output

2) The nominal interest rate; the fee charged to obtain money

3) Its usefulness as a store of value; the nominal interest rate

4) Its usefulness in carrying out transactions; consumption expenditure

5) Its usefulness in carrying out transactions; the shoe-leather cost

2. The nominal demand for money is ____.

1) Limited by the amount of currency printed by the Treasury

2) Unlimited, since people want as much money as possible

3) Limited by the supply of money as determined by the Fed

4) Generally higher when the nominal interest rate declines

5) Generally higher when real income declines

3. The aggregate demand curve will shift to the left EXCEPT when ____.

1) Autonomous tax increases

2) Autonomous consumption decreases

3) The velocity of money decreases

4) The money supply decreases

5) The price level increases

4. A possible SHORT-RUN effect of a one-time only decrease in the money supply is ____.

1) An increase in the natural unemployment rate

2) A decrease in the natural unemployment rate

3) A decline in potential output

4) An expansionary gap

5) An increase in the cyclical unemployment rate

Reference no: EM13685503

Questions Cloud

Policy trilemma-capital mobility for efficiency : Policymakers around the world often face what Obstfeld and Taylor dubbed a `policy trilemma': They want capital mobility for efficiency and edibility purposes;
Number of jobs created by this tax refund : Presume the federal government gives every U.S. household a $5000 one-time federal income tax refund this year. Describe the effect, if any, the refund might have on unemployment according to each of the following consumption theories: Which of the t..
Presume a product suddenly loses popularity : Presume a product suddenly loses popularity and the firms producing the product begin to realize large losses. In response, entrepreneurs would:
Deposits for any amount at an interest rate : Presume that the Malaysian ringgit is pegged to the US dollar at 2.5 ringgit/$. The central bank of Malaysia has $1 billion of international reserves left. Malaysian banks offer short term loans and deposits for any amount at an interest rate of 10 p..
Nominal demand for money and benefit of holding money : A benefit of holding money (cash) is ____, while the opportunity cost of holding money is ____. The nominal demand for money is ____. The aggregate demand curve will shift to the left EXCEPT when ____. A possible SHORT-RUN effect of a one-time only d..
Laser-based system installed-tax amount : A laser-based system installed for B = $150,000 three years ago can be sold for SP = $180,000 now. Based on 5-year MACRS recovery, BV3 = $43,200. GI for year is $800,000 and annual operating expenses average $50,000. Decide TI and taxes if Te = 34% i..
Affect the equilibrium price level and real gdp : Use an aggregate demand and aggregate supply diagram to illustrate and describe how each of the following will affect the equilibrium price level and real GDP
What is the value of the multiplier for this economy : Presume we are given the following information for the economy of Birch enough. GDP is $12,000, planned investment spending is $400 and autonomous consumption is $600. The marginal propensity to consume is 0.82. What is the value of the multiplier fo..
A risk adverse individual : A risk adverse individual has to choose among $100 with certainty and a risky option with two equally likely outcomes, $100-x and $100+x. Use graph or math to show that this person's risk smaller, the smaller x is (the less variable the gamble is

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd