Starting from a position of macroeconomic equilibrium at the full-employment level of real GDP, in the short run an unanticipated increase in the money supply will
a. raise real interest rates, lower prices, and reduce real GDP.
b. raise real interest rates, lower prices, and leave real GDP unchanged.
c. raise nominal interest rates, lower prices, and leave real GDP unchanged.
d. lower real interest rates, raise prices, and increase real GDP.
D
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The double coincidence of wants problem is solved by
A) credit markets. B) government intervention. C) the use of money. D) specialization.
Those who favor active policy making argue that all of the following exist EXCEPT
A) perfectly flexible wages and prices. B) inflation and unemployment are stable in the short run and predictable in the long run. C) pure competition is not typical. D) aggregate demand shocks can influence real GDP and unemployment.
The distinction between M1 and M2 is based on
a. portability-the ease with which an asset can be moved. b. divisibility-the ease with which an asset can be used to make smaller payments. c. liquidity-the ease with which an asset can be converted into cash. d. storability-how long an asset will retain its value.
Customer discrimination against black investment advisers ________ the salaries of black investment advisors and ________ the number of black investment advisers
A) decreases; decreases B) decreases; does not change C) does not change; decreases D) does not change; does not change