When real GDP increases, the demand for money
A) increases.
B) decreases.
C) stays the same.
D) we cannot make a prediction without additional information.
A
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The lottery this evening is worth $50 million dollars in your state. There are two people in your neighborhood that are buying lottery tickets. One is a student with little financial knowledge or business acumen
The other is a successful entrepreneur that is earning 20% rate of return on his business. Which of these people is likely to check off the "cash" option on the ticket and which is likely to choose the structured payout and why?
A fixed money-supply rule will have the greatest stabilizing effect on output when
A) money demand is unstable and commodity demand is stable. B) both money and commodity demand are unstable. C) both money demand and commodity demand are stable. D) the velocity of money is unstable.
A system of allocating scarce goods and services using some criteria other than price:
a. rationing b. price floor c. excess demand d. surplus e. equilibrium
Juan purchased a parking pass to a specific lot from the university for $600. Another student, Cara, wants to park there because it's close to her dorm, but cannot because it is full. The Coase Theorem suggests that which of the following negotiations would lead to an optimal outcome?
A. Cara pays Juan $500 for his parking pass B. Cara pays Juan $400 to buy another parking pass C. Cara pays Juan $650 for his parking pass D. Cara buys a pass to another lot for $400 and trades that with Juan