Other things being equal, the quantity of money that people wish to hold in currency and their checking accounts can be expected to:
a. increase as the interest rate increases.
b. decrease as the interest rate increases.
c. decrease as real GDP increases.
d. none of these.
b
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Explain what is meant by investment by MNCs encouraging inappropriate consumption
What will be an ideal response?
The major difference between the lag in monetary policy versus the lag in fiscal policy stems from the
A) data lag. B) legislative lag. C) recognition lag. D) transmission lag.
As an economy recovers from a recession, the observed level of labor productivity tends to decline. Why?
A) The total product remains the same during the recovery, but the number of workers declines. B) The total product increases during the recovery, but the number of workers declines. C) The marginal product of labor declines as new workers enter the expanding work force. D) The marginal product of labor increases at a slower rate than the decline in employment.
Asymmetric information is a situation in which ________ parties to a transaction have relevant private information that is ________ to the other parties.
A) all; unknown B) some; unknown C) some; known D) all; known