Central banks can increase the money supply by:
a. Making discount loans.
b. Selling government securities.
c. Selling foreign exchange.
d. Raising margin requirements.
e. All of the above.
.A
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If interest rates are falling, then, ceteris paribus,
A) bond holders are suffering capital losses. B) bond prices are rising. C) the liquidity demand for money will be falling. D) income must be rising.
Assume there are 75 transactions a year in an economy with a money supply of $300 . If the average value of each transaction is $20, then the velocity of money is
a. 1/2. b. 1 c. .2 d. 20.
A leftward shift in the aggregate supply curve along a fixed aggregate demand curve will cause cost-push inflation
a. True b. False Indicate whether the statement is true or false
A possible rational reason why older people, on average, show less interest in learning how to use new technologies is because
A. they are acting irrationally. B. the financial cost for older people is greater than the cost to younger people. C. they have fewer years to gain a return from learning how to use new technologies. D. older people are not as smart as (today's) young people.