In the above graphs, which of the following remains constant as the money supply increases?
a. price level
b. interest rate
c. aggregate demand
d. real gross domestic product
a. price level
You might also like to view...
A downward sloping income-demand curve indicates that the good is a necessity.
Answer the following statement true (T) or false (F)
The basic classical model can account for the procyclical behavior of money if there
A) are real business cycles caused by productivity shocks. B) is reverse causation from future output to money. C) are rational expectations among the public. D) are propagation mechanisms in the economy.
One way to approach saving is to have a goal of building a(n) ______________ of three to six month's income
a. Emergency fund b. Umbrella reserve c. Quantity fund d. Production/consumption reserve
A monopoly is most likely to emerge in a market when
a. the producers in the market have U-shaped average total cost curves. b. the price elasticity of demand for the product is high. c. the cost of entry and exit into the market is low. d. economies of scale are large relative to market demand.