In the Classical view, the money supply determines
A) interest rates.
B) the saving rate.
C) aggregate supply.
D) the price level.
D
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Refer to Table 5.1. What is Andrea's opportunity cost of producing one tiara?
A) 1/6 of a bracelet B) 2/3 of a bracelet C) 3 bracelets D) 6 bracelets
Less-developed countries are poor for all of the following reasons except one. Which one?
a. They do not produce many goods and services. b. Labor productivity is low. c. Investment funds tend to flow abroad d. Investment in human capital is very low. e. The labor force is too small.
DTC contracts which prohibit buyers from inspecting diamonds in advance help to minimize:
a. the problem of moral hazard. b. the cost of gathering duplicative information. c. the problem of adverse selection. d. the winner's curse.
Which of the following events must cause equilibrium quantity to fall?
a. demand increases and supply decreases b. demand and supply both decrease c. demand decreases and supply increases d. demand and supply both increase