The demand for money curve shows that there is an inverse relationship between the quantity of money demanded and the:
a. quantity of money supplied.
b. gross domestic product (GDP).
c. price level.
d. interest rate.
d
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What will be an ideal response?
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Indicate whether the statement is true or false
A contractionary monetary policy can reduce the inflation rate without causing a rise in unemployment if expectations are formed rationally and monetary policy is
A) combined with expansionary fiscal policy. B) carried out in total secrecy. C) publicly announced and credible. D) combined with contractionary fiscal policy.
Which of the following is true of public goods?
a. The market mechanism helps to signal the quantity that is demanded by the public. b. Payment for consumption is efficiently provided by market prices. c. Consumption by one person does not preclude consumption of the same good by another person. d. The public sector is guided to produce the correct quantity by market prices. e. Voluntary contributions will be sufficient to finance the production of public goods.