A reduction in which of the following variables will cause an increase in the amount of money individuals wish to hold in the current period?
A) current income
B) the current nominal interest rate
C) the current real interest rate
D) expected future income
E) all of the above
B
You might also like to view...
When a tariff is imposed on a good, domestic consumers of the good ________ and domestic producers of the good ________
A) win; win B) lose; win C) lose; neither win nor lose D) lose; lose E) win; lose
A study attempts to investigate the role of the various determinants of regional Canadian unemployment rates in order to get a better picture of Canadian aggregate unemployment rate behavior
The annual data (1967-1991) is for five regions (Atlantic region, Quebec, Ontario, Prairies, and British Columbia), and four age-gender groups (female and male, adult and young). Focusing on young females, the authors find significant effects for the following variables: the regional relative minimum wage rate (minimum wages divided by average hourly earnings), the regional share of youth in the labor force, the regional share of adult females in the labor force, United States activity shocks (deviations of United States GDP from trend), an indicator of the degree of monetary tightness in Canada, regional union density, and a regional index of unemployment insurance generosity. Explain why the authors only used region fixed effects. How would their specification have to change if they also employed time fixed effects? What will be an ideal response?
Which of the following factors contribute to economic growth?
a. the construction of new factories b. an increase in the proportion of the population that is college-educated c. a decrease in the productivity of labor d. only (a) and (b).
The German Hyperinflation of the early 1920s was caused by
A) the German government raising funds for expenditures by selling bonds to the central bank. B) an overly aggressive monetary policy implemented to combat a severe recession. C) rising oil prices after World War I caused a severe stagflation and hyperinflation. D) large deficits resulting from the high levels of war spending and falling taxes.