A decrease in the nominal interest rate ________ the opportunity cost of holding money
A) increases
B) decreases
C) can increase or decrease
D) None of the above answers is correct because the nominal interest rate does not affect the opportunity cost of holding money.
B
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Prices for fresh fruit, vegetables and other food products are examples of
A) custom prices. B) sticky prices. C) temporary prices. D) auction prices.
According to the quantity theory, in the long run, an increase in the growth rate of ________ leads to an increase in the ________
A) real GDP; inflation rate B) the quantity of money; growth rate of real GDP C) the quantity of money; inflation rate D) real GDP; growth rate of velocity
One of the main functions of a country's monetary policy is to
A. monitor government spending. B. supervise the banking system. C. issue new currency. D. regulate the economy.
Which of the following is not an example of a government-imposed entry barrier?
A) patents B) occupational licensing C) barriers to international trade D) antitrust legislation