During an economic expansion when real GDP increases, the
A) demand for money decreases.
B) nominal interest rate is constant.
C) demand for money increases.
D) supply of money decreases.
E) real interest rate is constant.
C
You might also like to view...
The break-even point is defined as occurring at an output rate at which
A) total revenue equals total opportunity cost. B) economic profit is maximized. C) marginal revenue equals marginal cost. D) total cost is minimized.
Which of the following $1,000 face-value securities has the highest yield to maturity?
A) a 5 percent coupon bond with a price of $600 B) a 5 percent coupon bond with a price of $800 C) a 5 percent coupon bond with a price of $1,000 D) a 5 percent coupon bond with a price of $1,200
An increase in expected inflation causes the real interest rate to ________ and output to ________ in the short run, before prices adjust to restore equilibrium.
A. rise; rise B. rise; fall C. fall; rise D. fall; fall
Demand is said to be inelastic when:
A. An increase in price results in a reduction in total revenue B. A reduction in price results in an increase in total revenue C. A reduction in price results in a decrease in total revenue D. The elasticity coefficient exceeds one