The money supply is
a. positively related to the interest rate
b. negatively related to the interest rate
c. positively related to income
d. negatively related to income
e. set by the Fed and therefore independent of the interest rate and income
E
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Seymour owns 3 acres of beautiful waterfront property on a large inland lake. In his will, Seymour donates the land to the state with the understanding that the land will be used as a state beach that anyone may use without paying any fees. This state beach
a. will tend to be overused because it is nonexcludable. b. is a common resource when it becomes crowded on sunny summer weekends. c. is rival in consumption when it becomes crowded on sunny summer weekends. d. All of the above are correct.
Country Y has fifteen thousand acres of land and forty-five thousand laborers, whereas the Rest of the World has one hundred thousand acres of land and two hundred thousand laborers. These countries produce a labor-intensive Good A, and a land-intensive Good B. When trade opens up between these countries, it can be inferred that Country Y will
A. import both goods. B. export both goods. C. export Good B, and import Good A. D. export Good A, and import Good B.
When people use recent information to gradually adjust their forecasts of inflation, they are said to have:
A. static expectations. B. adaptive expectations. C. rational expectations. D. spiraling expectations.
If an individual's opportunity cost of commute is $300 per month and his monthly commuting time is 60 hours, his opportunity cost of time is:
A) $10 per hour. B) $5 per hour. C) $30 per hour. D) $60 per hour.