Which of the following statements best completes the sentence, "All other factors constant, as the nominal interest rate increases, the opportunity cost of money..."?
A. decreases, the velocity of money decreases, and the quantity of money people want to hold decreases.
B. increases, the velocity of money increases, and the quantity of money people want to hold decreases.
C. decreases, the velocity of money increases, and the quantity of money people want to hold decreases.
D. increases, the velocity of money decreases, and the quantity of money people want to hold decreases.
Answer: B
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Which of the following is true of a prisoners' dilemma game?
A) A prisoners' dilemma game has multiple Nash equilibria. B) There is no dominant strategy equilibrium in a prisoners' dilemma game. C) The dominant strategy equilibrium in a prisoners' dilemma game is also the Nash equilibrium. D) The prisoners' dilemma game is an extensive-form game.
Two goods are substitutes if a decrease in the price of one raises the quantity demanded of the other.
Answer the following statement true (T) or false (F)
Expanding, contracting, and managing the money supply is easier for a central bank under the gold standard
Indicate whether the statement is true or false
In the long run, the quantity of money
A) does not matter. B) influences GDP. C) influences unemployment. D) influences the business cycle.