Velocity will be ________ if the demand for money with respect to the interest rate is perfectly elastic.
A. negative
B. zero
C. constant
D. variable
Answer: C. constant
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If the Ricardo-Barro effect occurs, an ________ in saving finances the government budget deficit and the real interest rate ________
A) increase; remains the same B) decrease; increases C) increase; falls D) decrease; remains the same
Refer to Figure 3-2. A decrease in the price of inputs would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
On the graph above, for a while after t = 0, the growth rate of technology is ________ the growth rate prior to time zero, and ________
A) below; falling B) below; rising C) above; constant D) above; falling
Which of the following cannot be determined on the basis of the above regression results?
A) the degree of price elasticity of good B B) whether or not good A is "normal" C) the degree of competition between A and B D) All of the above can be determined.