A surplus is a result of equilibrium price being below the current price.
a. true
b. false
Ans: a. true
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Economist Milton Friedman's theory of money demand is based on the supposition that money has a very ________ range of substitutes, giving monetary policy a ________ effect on aggregate demand
A) wide, strong B) wide, weak C) narrow, strong D) narrow, weak
Inflation might lead to ________ because ________
A) lower demand for stocks; of tax distortions B) lower demand for cash; money does not typically yield interest C) uncertain or uneven demand for goods; higher fluctuations in relative prices make it harder for consumers to compare among goods and make rational consumption decisions D) all of the above E) none of the above
Which of the following is a reason why the Japanese yen is considered money?
a. It is backed by gold. b. Its value over the years has varied significantly. c. Goods in Japan are priced in terms of the yen, the most liquid asset of the economy. d. It is backed by silver. e. It is an asset that lacks liquidity.
There were a huge number of bank failures between
A. 1930 and 1933. B. 1933 and 1936. C. 1936 and 1939. D. 1939 and 1942.