The long-run effect of a decrease in the growth rate of the quantity of money is a
A) higher real interest rate.
B) lower nominal interest rate.
C) higher inflation rate.
D) higher nominal interest rate.
E) lower real interest rate.
B
You might also like to view...
Consumer surplus
a. is the amount of a good that a consumer can buy at a price below equilibrium price. b. is the amount a consumer is willing to pay minus the amount the consumer actually pays. c. is the number of consumers who are excluded from a market because of scarcity. d. measures how much a seller values a good.
During times of high unemployment, colleges often observe an increase in enrollment even if tuition remains unchanged. Why?
A. The benefit of attending college is lower because college graduates are less likely to find jobs. B. The opportunity cost of attending college is higher when unemployment is high. C. The opportunity cost of attending college is lower when unemployment is high. D. Students go to college even when the net benefit is negative.
In economics, the term "equity" means
A) everyone has an equal standard of living. B) the hardest working individuals consume all they want. C) only elected officials have high standards of living. D) economic benefits are distributed fairly.
Suppose that in 2009 the total value of exports was $250 million, while imports were $225 million. The contribution of net exports to GDP was
a. $250 million b. $25 million c. $475 million d. $225 million e. -$25 million