Which of the following causes the quantity of money demanded to decrease?
A. an increase in the interest rate
B. a decrease in nominal income
C. an increase in the price level
D. an increase in nominal income
Answer: A
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The number by which a change in the monetary base is multiplied to find the resulting change in the quantity of money is called the
A) desired reserve ratio. B) money multiplier. C) currency multiplier. D) currency drain. E) open market operation.
Greatest availability of a service to those who need it least is called
a. market system b. public provision c. adverse selection d. non-exclusion e. none of the above
Compared to a perfectly competitive firm, a monopolist:
a. charges a higher price. b. produces lower output. c. fails to achieve an efficient allocation of resources. d. all of these.
The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to remain the same. b. M2 money supply to fall. c. M2 money multiplier to fall. d. M2 money supply to rise.