Which of the following functions express the money multiplier (m) for the narrowly defined money stock (M1)?
a. m = ?Ms/?(MB) = m(rrd)
b. m = ?Ms/?(MB) = m(rrd, CU/D, ER/D)
c. m = ?Ms/?(MB) = m(rrd + CU/D)
d. m = ?Ms/?(MB) = m(rr/D, CU/D, RR/D)
B
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Consider the labor market for heath care workers. Because of the aging population in the United States, the output price for health care services has increased. Holding all else equal, in the labor market for health care employees the equilibrium wage
a. increases, and the equilibrium quantity of labor increases. b. increases, and the equilibrium quantity of labor decreases. c. decreases, and the equilibrium quantity of labor increases. d. decreases, and the equilibrium quantity of labor decreases.
Suppose the interest rate is 7 percent. Consider four payment options: Option A: $500 today. Option B: $550 one year from today. Option C: $575 two years from today. Option D: $600 three years from today. Which of the payments has the lowest present value today?
a. Option A b. Option B c. Option C d. Option D
As the housing bubble collapsed, the combination of increasing interest rates and pessimism about future economic prospects:
A. increased both consumption and investment spending. B. decreased both consumption and investment spending. C. increased consumption and decreased investment spending. D. decreased consumption and increased investment spending.
An increase in the price level will cause a decrease in the aggregate amount of output supplied.
Answer the following statement true (T) or false (F)