People hold less money and lend more and the interest rate falls when the price level
a) increases by more than 30 percent.
b) remains constant.
c) increases by less than 30 percent.
d) decreases.
Ans: d) decreases.
You might also like to view...
The HO model rules out the classical model's basis for trade by assuming that ________ is (are) identical between countries
A) factor endowments B) factor intensities C) technology D) opportunity costs
In the Golden Rule steady state, the marginal product of capital is equal to the
A) savings rate plus the population growth rate. B) population growth rate plus the depreciation rate. C) depreciation rate plus the savings rate. D) savings rate divided by the marginal product of labor.
Public funding is not a part of colonial history
Indicate whether the statement is true or false
In the developing country of Sixsigma, most likely
a. resource owners tend to supply their resources where are most valued b. almost all workers are employed in service industries c. links to family or clan are totally unimportant d. children are expected to choose occupations as different as possible from their parents' occupations e. family businesses resist growth to avoid having to hire people from outside the family