The transaction demand for money varies
A. inversely with nominal GDP and real GDP.
B. directly with nominal GDP.
C. directly with the interest rate.
D. inversely with nominal GDP only.
Answer: B
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Suppose, at a given federal funds rate, there is an excess supply of reserves in the federal funds market
If the Fed wants the federal funds rate to stay at that level, then it should undertake an open market ________ of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will ________. A) sale; increase B) purchase; increase C) sale; decrease D) purchase; decrease
Compared to the distribution of money income, the distribution of wealth is
A) about the same. B) much more equal. C) much less equal. D) a little more equal.
Behaving strategically means:
A. evaluating decisions in which players act in their own self-interest, but the interplay of those decisions does not exist. B. acting to achieve a goal by withholding key information from the person with whom an exchange is being made. C. acting to achieve a goal by anticipating the interplay between your own and others' decisions. D. evaluating the impact of your choices on an uninvolved third party.
The real purchasing power of the average worker's yearly earnings in the United States in 2014 was ________ as in 1960.
A. more than twice as large B. about the same C. about half as much D. five times as large