If real income rises 4%, prices rise 1%, and nominal money demand rises 4%, what is the income elasticity of real money demand?
A) 3/4
B) 4/5
C) 5/6
D) 1
A
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Refer to the figure below. A decrease in supply is represented by a shift from: 
A. curve D to curve C. B. curve A to curve B. C. curve C to curve D. D. curve B to curve A.
Consider an economy where the growth rate of money supply is 2% and the inflation rate is 2%. If the quantity theory of money holds, the growth rate of real GDP in the economy will be:
A) 2%. B) 4%. C) 1%. D) 0%.
A rent ceiling on housing creates a problem of allocating the available housing units because
A) the demand for housing decreases and the demand curve shifts leftward. B) the supply of housing increases and the supply curve shifts rightward. C) a shortage of apartments occurs. D) a surplus of apartments occurs. E) it eliminates search, which is one of the major ways housing units are allocated.
If the costs of coordination and enforcement are ________ the surplus lost to the externality, then ________.
A. lower than; a private solution will not work B. higher than; a private solution will work C. higher than; a private solution will not work D. None of these statements is true.