In the long-run, money market equilibrium determines
A) the real interest rate.
B) the value of money.
C) real GDP.
D) the nominal interest rate
E) velocity.
B
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For a linear demand curve
A. elasticity is constant along the curve. B. elasticity is unity at every point on the curve. C. demand is elastic at high prices. D. demand is elastic at low prices.
Suppose the U.S. dollar is defined by law as being equal to 0.1 ounce of gold. Further suppose the British pound is defined as being equal to 0.05 ounce of gold. The implied exchange rate between the pound and the dollar is
A. A fixed rate at which $1 = 2 pounds. B. A flexible rate at which $2 = 1 pound. C. A fixed rate at which $2 = 1 pound. D. A flexible rate at which $1 = 2 pounds.
As disposable income grows,
A. both autonomous C and induced C rise. B. both autonomous C and induced C fall. C. autonomous C falls and induced C rises. D. autonomous C stays the same and induced C rises.
How do markets respond to price ceilings and price floors? Do attempts to repeal the laws of supply and demand meet their objectives?
What will be an ideal response?