For an individual LM curve, the money supply is assumed to
A) be constant.
B) grow at a rate equal to the interest rate.
C) grow at a rate equal to the growth rate in income.
D) grow at a rate equal to the marginal propensity to consume.
A
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The South's post-Civil War backwardness was due to all of the following except
(a) extensive wartime destruction of life and property. (b) the fiscal disaster of the Confederacy, whereby nine tenths of the state banks in the South vanished. (c) the price of cotton was increasing, as it had prior to the Civil War, thus keeping cotton profitable and discouraging investors in the South from developing a modern manufacturing system. (d) the failure of the sharecropping system to provide incentives for innovation and progress in agriculture.
The CPI was 154 in one year and 165 the following year. How much did prices rise between these two years?
a. 5.46 percent b. 6.67 percent c. 7.14 percent d. 0.07 percent
Discuss the fractional reserve system and why it is important.
What will be an ideal response?
Economists define inflation as
The price of necessities like food and gasoline. How fast on average prices are rising in a given period of time The value of the dollar Average house prices in a given area