If the demand for money depends on the interest rate, then a 15% increase in the money supply will increase
A. nominal GDP by more than 30%.
B. nominal GDP by 15%.
C. nominal GDP by less than 15%.
D. real GDP by 30%.
Answer: C
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If real GDP grows by 3 percent, the velocity of circulation grows by 4 percent, and the quantity of money grows by 3 percent, then in the long run the inflation rate is
A) 0 percent. B) 7 percent. C) 10 percent. D) 4 percent. E) -4 percent.
Your checking account balance is included in your bank's assets
Indicate whether the statement is true or false
If, for a $1000 premium, you buy a $100,000 put option on bond futures with a strike price of 114, and at the expiration date the price is 110, your ________ is ________
A) profit; $4000 B) loss; $4000 C) profit; $3000 D) loss; $3000
Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right. At the extreme right end, all 100 voters lie to the left. 
Suppose Candidate X is running against Candidate Y. If Candidate Z enters the race:
A. all of the voters who were going to vote for Y will now vote for Z. B. X will win because Y and Z will be competing for the same voters. C. approximately half of the voters who were going to vote for X will now vote for Z. D. most of the voters who were going to vote for Y will now vote for Z.