In Monetarist theory, the demand to hold money is:
a. The same as the demand to borrow real loanable funds.
b. Upward sloping because as the real risk-free interest rate rises, people want to hold more money.
c. Rather unstable because it changes greatly with movements in the real risk-free interest rate.
d. Neutral, in the sense that it is independent from all macroeconomic variables.
e. Rather stable and does not change greatly with movements in the real risk-free interest rate.
.E
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How does the time frame over which a supply decision is made influence the elasticity of supply? Explain your answer
What will be an ideal response?
Which of the following statements is not correct about the U.S. monetary system?
A. Between 1789 and 1865, paper money was issued by hundreds of state-chartered banks. B. Early in U.S. history, the money supply consisted of items such as tobacco and bullets. C. The federal government did not print paper money until the Civil War. D. Credit cards are the most common form of money today.
Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work the night shift. The difference in pay is attributed to
a. the marginal product of labor. b. the marginal product of capital. c. diminishing marginal returns. d. a compensating differential.
Which of the following is a source of frictional unemployment?
a. changes in the composition of demand among industries or regions b. minimum wages c. labor unions d. None of the above is correct.