In the money market, if real GDP increases, then the demand for money ________ and the equilibrium nominal interest rate ________
A) decreases; rises
B) decreases; falls
C) increases; falls
D) increases; rises
E) increases; does not change
D
You might also like to view...
Which might be a possible reason a cable television operator want to bundle channels together in packages ("tiers")?
a. delivering many channels to the consumer is not much more costly than delivering a few. b. simplifies the consumer's choice and perhaps lowers administrative costs. c. allows the firm to extract revenue from a consumer even if it does not know exactly which channels the consumer likes the most.. d. all of the above.
In the long run, entry ensures that the typical monopolistically competitive firm will
a. produce at minimum efficient scale b. earn an economic profit c. earn a normal profit d. price its output at marginal cost e. standardize its product
The aggregate supply curve shows the relationship between the ____ and the ____, holding all other factors constant.
A. price level; quantity of real GDP supplied B. price level; supply of nominal GDP C. nominal GDP; price level of real GDP D. price level; amount of nominal GDP supplied
If firms are making profits under perfect competition, in the long run the industry supply will ______ and price will ______.
A. rise; rise B. fall; fall C. fall; rise D. rise; fall