When Real Income ________,The Demand Curve for Money Shifts to the ________

question 18

Multiple Choice

When real income ________,the demand curve for money shifts to the ________ and the interest rate ________,everything else held constant.

• A) falls; right; rises
• B) rises; right; rises
• C) falls; left; rises
• D) rises; left; rises

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Definitions:

Resources

Assets or inputs used to produce goods and services.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, indicating the financial gain in excess of opportunity costs.

Accounting Profit

The total revenue of a firm less its explicit costs; the profit (or net income) that appears on accounting statements and that is reported to the government for tax purposes.

Diseconomies of Scale

A situation in which a company or business grows so large that the costs per unit increase, leading to decreased efficiency.