Which of the following shifts the demand for money curve?
i. change in the nominal interest rate
ii. change in real GDP
iii. change in the price level
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
D
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If the price of a normal good falls, what happens to the quantity demanded of that good?
What will be an ideal response?
Corporate managers and stockholders usually have the same goal of maximizing profit
Indicate whether the statement is true or false
Suppose that lenders want to receive a real rate of interest of 5 percent and that they expect inflation to remain steady at 2 percent in the coming years. Based on this, lenders should charge a nominal interest rate of:
A. 3 percent. B. 7 percent. C. 2 percent. D. 5 percent.
Ceteris paribus, a weaker U.S. dollar does all of the following except
A. Reduce the prices paid by U.S. consumers for foreign-grown farm products. B. Raise costs of importing agricultural products from abroad to the United States. C. Generate short-run economic profits for farmers because it increases foreign demand for U.S. agricultural products. D. Raise the dollar value of farmland because it increases foreign demand for U.S. agricultural products.