Which of the following would cause the money demand curve to shift to the left?
A) an open market purchase of Treasury securities by the Federal Reserve
B) an increase in the interest rate
C) an increase in the price level
D) a decrease in real GDP
Answer: D
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The nominal interest rate approximately equals which of the following?
A) the real interest rate minus the inflation rate B) the real interest rate plus the inflation rate C) the real interest rate minus the growth rate of real GDP D) the real interest rate plus the growth rate of real GDP
The gains from free trade are enjoyed by a ________ number of people and the costs of free trade are imposed by ________ number of people
A) small; large B) large; small C) small; small D) large; large
For almost all goods, the:
A. lower the price goes, the higher the quantity demanded. B. higher the price goes, the more luxurious it is. C. lower the price goes, the higher demand is. D. higher the price goes, the higher the quantity demanded.
Which of the following questions would economists most likely disagree about?
a. What will be the effect of the new minimum wage on the sales of a product? b. How much should a company increase the price of a product? c. How much will demand increase for a product if the price decreases by 2 percent? d. What will be the increase in production with new technology in place?