If P denotes the price of goods and services measured in terms of money, then
a. 1/P represents the value of money measured in terms of goods and services.
b. P can be regarded as the "overall price level.".
c. an increase in the value of money is associated with a decrease in P.
d. All of the above are correct.
d
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Assume dental care is provided by a competitive industry. A new government regulation requires each dentist to take a costly new exam for certification. What happens to the price of dental care?
a. The price of dental care rises in the short run and rises further in the long run. b. The regulation will cause higher prices in the short run, but it will have no long-run impact. c. There is no change in the short run, but dentists will exit and prices will rise in the long run. d. The exam is a sunk cost, so the price of dental care does not change in either the short run or the long run.
Computers are a complement to computer software. Suppose the price of a computer falls. How does this fall in price affect the demand for computer software and the demand curve for computer software?
What will be an ideal response?
When supply increases
A. demand decreases. B. price increases because excess supply develops at the original price. C. price decreases because a less supply is available at the original price. D. price decreases because a excess supply at the original price.
M1 = 1,000 Small denomination time deposits = 1,500 Savings deposit = 1,800 Money market mutual funds = 300 Large denomination time deposits = 800 How much is M2
What will be an ideal response?