If the equation for the ________ is looked on as a demand-for-money equation, then the demand for money depends on nominal income but not the interest rate.
A. real business cycle theory
B. unanticipated inflation rate
C. quantity theory of money
D. Keynesian income-expenditure model
Answer: C
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What will be an ideal response?
The demand for most farm products is relatively inelastic. All else constant, what is the effect on farm revenues as a result of the introduction of new and better farm equipment which increases productivity?
A) Farm revenues could increase or decrease depending on the cost of this new equipment. B) Farm revenues remain constant because consumers will not increase their consumption of farm products by much. C) Farm revenues increase. D) Farm revenues decrease.
If you bought a long futures contract you hope that bond prices
A) rise. B) fall. C) are stable. D) fluctuate.
Crowding out is most likely to occur when the federal government:
A. Runs a surplus and pays off part of the debt. B. Balances the budget. C. Runs a deficit and raises taxes to generate more revenue. D. Runs a deficit and borrows money to finance its spending.