If the interest rate increases, the opportunity cost of holding money __________, and the quantity demanded of money __________
A) does not change; does not change
B) increases; also increases
C) decreases; increases
D) increases; decreases
E) decreases; also decreases
D
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Which of the following factors affecting decision-making is studied by Behavioral Game Theory?
A) psychological biases B) limited power of calculation C) weather forecast D) A and B are correct
According to the quantity theory of money, if M's growth is less than Q's, then
a. V falls b. V rises c. P stays the same d. P falls e. P rises
Which of the following statements is false?
A. The production possibilities curve shows the combinations of goods that can be consumed by a nation before trade begins. B. The production possibilities curve shows the combinations of goods that can be consumed by a nation after trade and specialization begins. C. The production possibilities curve shows the combinations of goods that can be produced by a nation before trading begins. D. The production possibilities curve shows the combinations of goods that can be produced by a nation after trade and specialization begins.
The real interest rate is:
A. the percentage increase in money that the lender receives on a loan. B. the percentage increase in purchasing power that the lender receives on a loan. C. also called the after-tax interest rate. D. usually higher than the nominal interest rate.