In the long run, money demand and money supply determine
a. the value of money and the real interest rate.
b. the value of money but not the real interest rate.
c. the real interest rate but not the value of money.
d. neither the value of money nor the real interest rate.
b
You might also like to view...
According to the law of supply, the quantity supplied is _____ related to price, other things constant.
A) inversely B) negatively C) directly D) indirectly E) never
Since the early 1970s, average incomes have
a. increased, which has reduced the poverty rate. b. increased, while the poverty rate increased slightly. c. decreased, while the poverty rate has remained unchanged. d. remained unchanged, while the poverty rate has decreased.
The external marginal cost of producing coal is MCexternal = 8Q while the internal marginal cost is MC internal = 6Q. The inverse demand for coal is given by P = 180 ? 4Q. How much output would a competitive industry produce?
A. 10 B. 20 C. 18 D. 15
The water-diamond paradox is resolved once we realize that the marginal utility of the last gallon of water consumed is very ____ and the marginal utility of the last diamond carat purchased is very ____.
A. low; low B. high; high C. high; low D. low; high