If the equation for the quantity theory of money is looked on as a demand-for-money equation, then the demand for money depends on
A. nominal income and the interest rate.
B. real income but not on the interest rate.
C. real income and the interest rate.
D. nominal income but not on the interest rate.
Answer: D
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An economic growth model
A) explains changes in nominal GDP per capita in the short run. B) explains changes in real GDP per capita in the short run. C) explains changes in real GDP per capita in the long run. D) explains changes in nominal GDP per capita in the long run.
Because the United States has a flexible exchange rate system, one would expect that
a. U.S. exports and imports would be in balance. b. the U.S. current account would be in balance. c. U.S. exports to China would be in balance with U.S. imports from China. d. all of the above are true. e. none of the above are true.
A short-run production function was estimated asQ = ?0.002L3 + 0.16L2At 20 units of labor, what is average product?
A. 6.0 B. 1.9 C. 2.4 D. 4.0 E. 6.3
Logan finds $10 in his jacket pocket and deposits it into a bank. As a result of this single transaction, M1 has:
A. increased by $10. B. increased by more than $10. C. increased by less than $10. D. not changed.