A change in the interest rate does not affect the quantity of money supplied. This means that:
a. the money supply curve is negatively sloped.
b. the money supply curve is vertical.
c. the money supply curve is horizontal.
d. the money supply curve is a 45 degree line drawn from the origin.
e. the money supply curve is kinked.
b
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A country is categorized as a low-income economy by the World Bank if its per capita income is below:
a. $1,000. b. $100. c. $10,000. d. $50. e. $5,000.
What is the final outcome if each firm follows its dominant strategy?
a. Each firm makes a profit of $75 M.
b. Each firm makes a profit of $100 M.
c. Each firm makes a profit of $125 M.
d. Each firm makes a profit of $175 M.
Equilibrium Interest Rate
The long-run real interest rate is the long-run nominal interest rate ________
A) minus inflation expectations B) plus all taxes C) plus inflation expectations D) minus all taxes