The money market is linked to the goods and services market by the impact of income on the demand for money.
a. true
b. false
Answer: a. true
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In the short run, a permanent increase in the domestic money supply causes
A) a greater upward shift in the DD curve than that caused by an equal, but transitory, increase. B) a greater downward shift in the AA curve than that caused by an equal, but transitory, increase. C) an smaller upward shift in the AA curve than that caused by an equal, but transitory, increase. D) a smaller downward shift in the AA curve than that caused by an equal, but transitory, increase. E) a greater upward shift in the AA curve than that caused by an equal, but transitory, increase.
In reality, decisions made by firms may not always produce maximum total profit because some executives
A. are more motivated by altruism. B. are more interested in market share than profits. C. may push research and development to the point that profits decline. D. All of the responses are correct.
Let R2unrestricted and R2restricted be 0.4366 and 0.4149 respectively. The difference between the unrestricted and the restricted model is that you have imposed two restrictions. There are 420 observations. The F-statistic in this case is
A) 4.61 B) 8.01 C) 10.34 D) 7.71
Ceteris paribus, if Korea increases the size of its military, then its production:
A. Possibilities curve will shift outward. B. Possibilities curve will shift inward. C. Of consumer goods will increase. D. Of consumer goods will decrease.