The money demand curve relates ________ to the ________.
A. the aggregate quantity of money demanded; nominal interest rate
B. the aggregate quantity of money demanded; aggregate demand
C. aggregate demand; nominal interest rate
D. the aggregate quantity of money demanded; price level
Answer: A
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When the cross elasticity of demand between one product and all other products is low, one is generally referring to a(n) ____ situation
a. oligopoly b. monopoly c. pure competition d. substitution e. monopolistic competition
It is best to view the official unemployment rate as a useful but imperfect measure of joblessness
a. True b. False Indicate whether the statement is true or false
Banks make additional loans when desired reserves
a) exceed actual reserves, a situation of positive excess reserves. b) are less than actual reserves, a situation of positive excess reserves. c) exceed actual reserves, a situation of negative excess reserves. d) are less than actual reserves, a situation of negative excess reserves.
Which of the following are possible consequences when the government reduces government purchases to address an inflationary gap?
I. increase in the price of bonds II. increase in net exports III. decrease in the federal budget deficit (or increase the surplus) IV. decrease in the exchange rate A) I, II, III, and IV B) I and III only C) I, III, and IV only D) II, III, and IV only