An expansion of the money supply by the country's central bank
A. decreases the willingness of banks to lend money.
B. reduces the price level.
C. causes domestic interest rates to fall.
D. increases the level of international capital inflows.
Answer: C
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Frank Murphy is considering how many snowmobiles to purchase for his snowmobile rental business. Below are his estimates of the number of snowmobile rentals per year, depending on the number of snowmobiles available.Number ofSnowmobilesYearlyrentals1902170324043005350After paying all non-interest expenses, expenses Frank expects to net $10 per rental. Each snowmobile costs $15,000. How many snowmobiles should Frank purchase if the real interest rate is 4.5%?
A. 4. B. 0. C. 2. D. 1.
If velocity does not change and if real GDP and the quantity of money grow at the same rate, then the price level
A) does not change and the inflation rate is zero. B) falls and the inflation rate is negative. C) rises and the inflation rate is negative. D) falls and the inflation rate is positive. E) rises and the inflation rate is positive.
A good or service or a resource is nonexcludable if
A) it is possible to prevent someone from enjoying its benefits. B) it is not possible to prevent someone from benefiting from it. C) its use by one person decreases the quantity available for someone else. D) its use by one person does not decrease the quantity available for someone else.
In the United States, the poorest 50 percent of households own about ________ of total wealth
A) 1 percent B) 10 percent C) 20 percent D) 30 percent