The demand for money is a relationship between:
a. the price level and the amount of cyclical unemployment
b. the price level and the actual output produced in an economy.
c. the interest rate and how much money people choose to hold.
d. the interest rate and how much money people earn during a certain time period.
e. the interest rate and the rate of inflation.
c
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Kelly's marginal utilities for magazines and packages of gummy bears are listed in the table above. What is the extra utility received by Kelly when she decides to consume 3 packages of gummy bears instead of 2 packages?
A) 20 B) 160 C) 180 D) 540
Which theory explains all three facts about the term structure?
A) expectations B) segmented markets C) preferential treatment D) liquidity premium
To maintain a fixed exchange rate, in response to an increase in the government budget deficit the central bank must
a. sell foreign currency from reserves. b. buy foreign currency. c. raise taxes. d. raise government spending. e. pass a law that increases the exchange rate.
The immediate effect of a purchase of a government bond on the gross domestic product (GDP) is_____.?
a. a decrease in consumption b. an increase in government spending c. an increase in investment d. a decrease in investment e. nonexistent, since no real goods and services have been produced