The real balance effect describes the change in
A) checking account balances that occur when the money supply increases or decreases.
B) the value of physical assets (e.g., houses) that results from a change in the price level.
C) the output producers produce as they attempt to balance their production in response to changes in consumers' demand.
D) the value of cash holdings that results from a change in the price level.
E) the balance of cash holdings that results from a change in the amount of income earned.
D
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Sarita can bake either a combination of 25 cakes and 15 pies or a combination of 10 cakes and 20 pies. If she now bakes 10 cakes and 20 pies, what is the opportunity cost of baking an additional 15 cakes?
A) 5 pies B) 10 pies C) 15 pies D) 20 pies
Of the types of business organizations in the United States, corporations account for ________ percentage of firms and ________ percentage of profits
A) the smallest; the largest B) smallest; neither the largest nor smallest C) neither the largest nor smallest; the largest D) the largest; the largest
Governments around the world tend to auction quota licenses
A) never. B) seldom. C) often. D) always.
Reserves of member banks appear on the Fed's balance sheet as liabilities
a. True b. False Indicate whether the statement is true or false