The ________ interest is the relevant interest rate in the money market; the __________ interest rate is the relevant interest rate in the loanable funds market
a. Nominal; nominal.
b. Nominal; real
c. Real; nominal
d. Real; real
b
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An increase in the money wage rate
A) increases the long-run aggregate supply. B) decreases the long-run aggregate supply. C) increases the short-run aggregate supply. D) decreases the short-run aggregate supply.
If the tax doubles to $24, the distortion
Suppose the supply of labor is W – t = 10H, where W is the gross wage, t is the tax (in dollars), and H is labor hours. The demand for labor is W = 120 – 2H. a) declines b) remains the same c) doubles d) triples e) quadruples
A movement along the demand curve for toothpaste would be caused by
A) a change in the price of toothbrushes. B) a change in consumer income. C) a change in the price of toothpaste. D) a change in population.
The choice to hold money in the form of cash
A. Has no opportunity cost. B. Results in greater outstanding debt. C. Results in forgone interest. D. Results in increased interest income.