As nominal Gross Domestic Product (GDP) rises, the transactions demand for money
A. decreases, and the money demand curve shifts to the left.
B. increases, and the money demand curve shifts to the left.
C. increases, and the money demand curve shifts to the right.
D. remains constant, and the money demand curve remains the same.
Answer: C
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In the generalized dividend model, if the expected sales price is in the distant future
A) it does not affect the current stock price. B) it is more important than dividends in determining the current stock price. C) it is equally important with dividends in determining the current stock price. D) it is less important than dividends but still affects the current stock price.
A country's financial account balance decreases if
A) its current account balance increases. B) its income payment inflows on foreign assets decrease. C) its domestic residents working abroad reduce the income they send home to their families. D) foreigners increase their purchases of its existing assets.
The popular and dominant school of economists in the 1930s who could not explain why the economy went into a depression were the:
A. Classical School. B. Austrian School. C. Mercantilists. D. Ricardians.
"Saving" refers to ____ while "savings" refers to ____
a. a stock concept; a flow concept b. how much is saved within a certain time period; accumulated assets c. a stock concept; accumulated assets d. how much is saved within a certain time period; a flow concept