The classical economists' conclusion that nominal income is determined by movements in the money supply rested on their belief that ________ could be treated as ________ in the short run
A) velocity; constant
B) velocity; variable
C) money; constant
D) money; variable
A
You might also like to view...
Insurance companies are not permitted to require AIDS tests as a precondition for coverage, so they do not know whether or not the people they insure have already contracted HIV (the virus that causes AIDS). This situation is an example of
a. signaling. b. adverse selection. c. the principal-agent problem. d. moral hazard.
The expenses you encounter when you buy in one market and sell in a distant market are known as
A) transactions costs. B) sunk costs. C) fixed costs. D) production costs.
If the Internet makes it easier for sellers to find buyers and makes it easier for buyers to learn about the products that are available for sale, we would expect that
a. the volume of trade will decline. b. transaction costs will rise. c. the gains from trade will increase. d. buyers and sellers will be worse off.
The computerization of police departments throughout the country has greatly reduced the crime rate. What macroeconomic variable is likely to be directly affected by this change?
A) Productivity B) Inflation C) The real interest rate D) The trade deficit