The market for money is in equilibrium
A) only if the non-money asset market is in equilibrium.
B) whenever the economy is at potential GDP.
C) when the cyclical unemployment rate is zero.
D) the Fed achieves its target for the expected inflation rate.
A
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The theory of investment that links investment spending to stock prices is known as the
A) multiplier model. B) accelerator model. C) neoclassical theory of investment. D) Q-theory of investment.
Transaction costs include
A) costs of negotiating contracts with other firms. B) cost of enforcing contracts. C) the existence of asset-specificity. D) All of the above
Private property rights involve
a. the right to exclusive use of the property. b. legal protection against those who would seek to use or abuse the property without the owner's permission. c. the right to transfer, sell, exchange, or mortgage the property. d. all of the above.
Consider the relationship given by QCars = 100 + 4 × PCars - 2 × PSteel - 0.2 × PWorkers, where QCars is the quantity of cars supplied (in thousands), PCars is the price of cars (in thousands of dollars), PSteel is the price of steel, and PWorkers is the wage earned by autoworkers. If the price of steel is $10 per unit and the price of workers (the wage) is $20, what is the supply curve for cars?
A. QCars = 124 + 4 × PCars B. QCars = 100 + 4 × PCars - 2 × PSteel - .2 × PWorkers C. QCars = 100 + 4 × PCars D. QCars = 76 + 4 × PCar