Which of the following is true?
A) The loanable funds model is essentially a model that determines the long-term nominal rate of interest.
B) The loanable funds model is essentially a model that determines the short-term real rate of interest.
C) The money market model is essentially a model that determines the short-term real rate of interest.
D) The money market model is essentially a model that determines the short-term nominal rate of interest.
D
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Long-run cost functions are estimated using
A) time-series regression analysis. B) cross-sectional regression analysis. C) cost accounting data. D) None of the above
Mary increases her consumption of Good X after the price of Good Y decreased. For Mary
A) Good X and Good Y are substitutes. B) Good X and Good Y are complements. C) Good X is an inferior good. D) Good Y is an inferior good.
The aggregate supply curve
a. indicates the markup at which firms are willing to supply a given level of output b. is derived from equilibrium conditions in the money market c. has a positive slope because an increase in real GDP causes an increase in the cost of resources d. is found by summing up the supply curves of all the firms in an economy e. illustrates how a change in the price level affects total output
A monetized debt prompts:
A. a contractionary monetary policy. B. an expansionary tax base. C. an inflationary tax. D. a contractionary fiscal policy.