Suppose That as Sales of Goods Shift from Bricks-And-Mortar Stores

question 35

Multiple Choice

Suppose that as sales of goods shift from bricks-and-mortar stores to the internet,the transactions demand for cash declines. Then in the absence of any other changes,

• A) the IS curve shifts outward
• B) the LM curve shifts inward
• C) the velocity of money will adjust to keep GDP constant
• D) interest rates will fall and GDP will increase
• E) interest rates will rise and investment will decline

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Definitions:

Income Inequality

The uneven distribution of income within a population, often measured and analyzed through various economic indicators.

Unionism

The advocacy, formation, or activities of labor unions, which are organizations that represent the collective interests of workers in negotiations with employers.

Highly Skilled Workers

Individuals with advanced training, expertise, and experience in specific fields, making them capable of performing complex tasks proficiently.

Income Distribution

The distribution of total earnings among individuals within a society.