If the asset market is in equilibrium, the growth rate of the nominal money supply minus the growth rate of real money demand equals
A) the real interest rate.
B) the inflation rate.
C) the price level.
D) the growth rate of real output.
B
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What will be an ideal response?
If the paint on your house was eaten away by the fumes from a factory nearby and you hired a lawyer to sue the polluting firm, your legal fees would be considered
A) marginal benefits. B) social costs of the pollution. C) external costs. D) transactions costs.
One of the reasons for the structure of the Federal Reserve is ________.
a. to insulate monetary policy from politics b. to increase Congress’ influence on monetary policy c. to increase presidential influence on monetary policy d. to insulate fiscal policy from politics
The production possibilities frontier represents all desirable combinations of two goods
a. True
b. False