An increase in money supply causes the real interest rate to ________ and the price level to ________ in general equilibrium.
A. remain unchanged; fall
B. rise; rise
C. fall; fall
D. remain unchanged; rise
Answer: D
You might also like to view...
The entry and exit of firms in a perfectly competitive market is mostly dependent on:
A) the number of firms in the market. B) government regulations. C) profitability. D) the number of consumers in the market.
Congressman Flack votes for a program that will benefit the constituents of Congressman Walpole. Which of the following explanations for Flack's vote is most consistent with the public choice model?
A) Congressman Flack did not have time to read and understand all of the legislation he voted on. Members of Congress often depend on their staffs to read proposed legislation and recommend how they should vote. B) Legislators such as Congressman Flack are similar to other decision-makers in that they sometimes make irrational choices. C) Congressman Flack expects Congressman Walpole's support for programs that will benefit Flack's constituents. D) Congressman Flack will support programs of legislators from his own party, regardless of who benefits from these programs.
The Coase Theorem states that there is a single unique way to assign property rights if the private sector is to achieve environmental efficiency
a. True b. False Indicate whether the statement is true or false
A forecaster used the regression equationQt = a + bt + c1D1 + c2D2 + c3D3and quarterly sales data for 1996 I - 2013 IV (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D1, D2 and D3 are dummy variables for quarters I, II, and III. 
Using the estimation results given above, the predicted level of sales in 2014 IV is ________ units.
A. 133.5 B. 132 C. 127.50 D. 125 E. none of the above