Refer to the given information. If nominal GDP is $300 and the supply of money is $230, the equilibrium interest rate will be:
Answer the question on the basis of the following information. For transactions, households
and businesses want to hold an amount of money equal to one-half of nominal GDP. The table
shows the amounts of money they want to hold as an asset at various interest rates.
A. 8 percent.
B. 6 percent.
C. 4 percent.
D. 2 percent.
C. 4 percent.
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The main factor that explains the difference between accounting cost and economic cost is
A) opportunity cost. B) fixed cost. C) variable cost. D) All of the above help to explain the difference.
Monopolies and oligopolies both erect barriers to entry through the use of
A) price cutting. B) patents. C) franchising. D) advertising.
If the dollars per pound exchange rate falls, there is a(n)
a. rightward movement along a single supply of pounds curve b. leftward movement along a single supply of pounds curve c. leftward shift of the supply of pounds curve d. rightward shift of the U.S. supply of pounds curve e. tendency for the U.S. supply of pounds curve to become steeper
Under what condition will an increase in aggregate demand result in no increase in the price level?
A. The aggregate demand curve is upward sloping. B. The aggregate demand curve intersects the upward-sloping segment of the aggregate supply curve. C. The aggregate demand curve intersects the horizontal segment of the aggregate supply curve. D. The aggregate demand curve intersects the downward-sloping segment of the aggregate supply curve.