The Cambridge equation equates money demand as
A) a fraction of nominal GDP.
B) a percentage of real GDP.
C) a fraction of money supply.
D) a ratio of spot exchange rates.
A
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The process of focusing on only the most important factors to explain a phenomenon is called
A. abstraction. B. marginal analysis. C. rational choice. D. controlled experimentation. E. the trade-off between efficiency and equality.
Which of the following statements is true for both Microsoft and a locally owned restaurant?
A. Both confront perfectly elastic demand for their products. B. Both are perfect competitors. C. Both seek to maximize profits. D. Neither firm is able to influence the price of their products.
The balance sheet of a bank shows its
A) assets and liabilities. B) earnings and expenses. C) revenues and costs. D) profits and losses.
Refer to above figure. Assume that Boeing is the first to enter the Hungarian market. Without a government subsidy what price would they demand, and what would be their total profits?
What will be an ideal response?