The quantity of money people want to hold increases if
A) the price level falls.
B) the nominal interest rate rises.
C) real GDP increases.
D) All of the above answers are correct.
C
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Should you type your own term paper or hire a specialist to do it for you? Your comparative advantage as a typist increases as you
A) find you have completed all your studying. B) get laid off from your job working afternoons at the gas station. C) improve your skills as a typist. D) encounter any of the above changes in your situation.
There are situations in which average revenue and price are different
Indicate whether the statement is true or false
Lowering the required reserve ratio __________ the simple deposit multiplier which will __________ the economy's money supply
A) raises; increase B) raises; decrease C) lowers; increase D) lowers; decrease
According to Keynesian economists, the key limitation on business production, and therefore on employment, is the
A. demand for output produced by business. B. rate of growth of the money supply. C. price of raw materials. D. level of the wage rate for skilled labor.