An unexpected change in nominal interest rate changes real interest rate by ____ in the short run
a. a smaller amount
b. a larger amount
c. the same amount
d. an indeterminate percent
c
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Financial markets are
A) institutions that make loans to borrowers and obtain funds from savers. B) organized exchanges where securities and financial instruments are bought and sold. C) organized exchanges where currencies are traded. D) institutions that regulate financial instruments.
If two fast food pizza companies are in an agreement, this is an example of a ________ agreement.
A) leftward B) vertical C) rightward D) horizontal
Mercantilists believed that national military power could be achieved best by _______
a. confiscating church lands and selling them to private businesses. b. freeing business from government regulation. c. having the government supply the infrastructure for the economy, while leaving private enterprise alone in other spheres. d. strictly regulating economic life.
If nominal GDP is $7,700 billion and M1 is $1,000 billion, then velocity is
a. 10.7. b. 7.7. c. 7.1. d. 7.0.