In the Cambridge version of the Quantity Theory of Money, the amount of real money balances __________ after an increase in the nominal money supply
A) increases
B) decreases
C) is unchanged
D) Cannot be determined from the information given.
D
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The most important determinant of any multiplier in the Keynesian model is
a. the level of planned investment. b. the level of unemployment. c. the marginal propensity to consume. d. the level of excess demand.
A larger crowding-out effect:
a. increases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effects on investment. b. increases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effects on investment. c. decreases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effects on investment. d. decreases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effects on investment.
In July, market analysts predict that the price of gold will rise in August. What happens in the gold market in July, holding everything else constant?
A) The supply curve shifts to the right. B) The supply curve shifts to the left. C) The quantity demanded and the quantity supplied increase. D) The demand curve shifts to the left.
We are told that over the past year actual real GDP has risen by three percent. This fact alone is enough to tell us that
A) the unemployment rate has fallen. B) the inflation rate has risen. C) the actual real GDP is above natural real GDP. D) productivity has grown. E) none of the above.