If we look at the equation for money demand from Irving Fisher, which of the following statements is true?
A. Money demand is not a factor of nominal income
B. The price level does not impact money demand
C. There isn't an explicit role for the interest rate in the equation
D. Velocity does not play any role in the equation
Answer: C
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When I purchase a corporate ________, I am lending the corporation funds for a specific time. When I purchase a corporation's ________, I become an owner in the corporation
A) bond; stock B) stock; bond C) stock; debt security D) bond; debt security
Which of the following groups has the lowest median income in the United States?
A. Married couples with both spouses working B. Female-headed families with no husband present C. Male-headed families with no wife present D. Married couple families with the wife not working
Suppose a wave of investor and consumer pessimism causes a reduction in spending. If the Federal Reserve chooses to engage in activist stabilization policy, it should
A. decrease the money supply and increase interest rates. B. increase the money supply and decrease interest rates. C. decrease government spending and increase taxes. D. increase government spending and decrease taxes.
A good research question should not be backed by time series data.
Answer the following statement true (T) or false (F)