The effect on the level of income of a given increase in the money stock is
a. irrelevant to the interest elasticity of money demand.
b. greater the lower the interest elasticity of money demand.
c. greater the higher the interest elasticity of money demand.
d. None of the above
B
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A country will import a good only if
a. there is excess domestic quantity supplied at the world price b. domestic quantity supplied is greater than world quantity supplied c. domestic quantity demanded is less than world quantity demanded d. domestic quantity demanded is zero at the world price e. excess quantity demanded is positive at the world price
Bitcoin:
a. Is a physical currency that can be converted freely into a wide variety of virtual and (other) real currencies? b. Virtual currency that keeps track of Bitcoin owners and users by means of a clearing house called Mt. Gox. c. Is a virtual currency that publishes online the details on all its customers' addresses but manages to keep customers' identities secret by not publishing any facts related to their transactions? d. Is a virtual, peer-to-peer currency.
Joe's budget constraint equals 500 = 2F + 100S, where $500 is Joe's income, $2 is the price of food (F) and $100 is the price of shelter (S). How much food can Joe buy if he buys one unit of shelter?
A) 2 units B) 200 units C) 250 units D) 400 units
How might a U.S. federal budget surplus affect the balance of trade? (Assume exchange rates are stated in terms of foreign currency per U.S. dollar.)
A) A federal budget surplus raises interest rates, which raises exchange rates, and increases the balance of trade. B) A federal budget surplus reduces interest rates, which raises exchange rates, and reduces the balance of trade. C) A federal budget surplus raises interest rates, which raises exchange rates, and reduces the balance of trade. D) A federal budget surplus reduces interest rates, which reduces exchange rates and increases the balance of trade.