One type of demander in the loanable funds market
A) lends funds to purchase financial capital.
B) lends funds to purchase physical capital.
C) wants physical capital in order to purchase financial capital.
D) wants funds to purchase financial capital.
E) wants funds to purchase physical capital.
E
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An argument in favor of the Federal Reserve adopting inflation targeting is that in the long run, the Fed can have an impact on inflation but not on real GDP
Indicate whether the statement is true or false
In the Cambridge approach, if k is .5, total output is $50 billion, and the money supply is $100 billion, the price level is
A) 0.5. B) 4.0. C) 3.0. D) 10.0.
The city of Austin can buy roads or light rail. If 10 miles of roads cost $1 million and 2 miles of light rail cost $10 million, what is the city's opportunity cost of 1000 miles of roads?
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Nominal GDP uses current year prices to measure GDP
Indicate whether the statement is true or false