The quantity of money that people choose to hold is
A) positively related to the nominal interest rate.
B) positively related to real GDP.
C) negatively related to the price level.
D) positively related to the availability of ATM machines.
B
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When calculating GDP, purchases of used goods are
A) included at the original price. B) included by taking the original price and subtracting the (current) used price. C) included at the (current) used price. D) not included. E) included at the original price minus any depreciation.
The financial deregulation and financial innovations of the 1970s and 1980s
A) stabilized money demand. B) stabilized velocity. C) destabilized velocity. D) A and C.
If real interest rates in the United States rise relative to real interest rates in other countries, other things being equal, a. the exchange value of the dollar would decline relative to other currencies
b. the exchange value of the dollar would increase relative to other currencies. c. there would likely be no effect on the exchange value of the dollar relative to other currencies. d. there would be an indeterminate effect on the exchange value of the dollar relative to other currencies.
Adam Smith's book, The Wealth of Nations, was published at the time of the:
a. War of 1812. b. U.S. Civil War. c. Great Depression. d. U.S. Declaration of Independence.