A sustained change in the monetary growth rate will
A) immediately affect equilibrium real money balances by raising the money interest rate.
B) eventually affect equilibrium nominal money balances by raising the money interest rate.
C) eventually affect equilibrium real money balances by reducing the money interest rate.
D) eventually affect equilibrium real money balances by raising the real interest rate.
E) eventually affect equilibrium real money balances by raising the money interest rate.
E
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What is meant by spreading overhead?
What will be an ideal response?
Economic efficiency requires that costs associated with the expansion and utilization of capital be balanced against the
a. future increases in output derived from improved tools and production methods. b. reduction in future employment due to automation. c. indirect costs of capital goods. d. need to maintain a reserve army of the unemployed.
Which of the following is not considered to be an important determinant of investment?
A. Technological change. B. Expectations. C. Interest rates. D. Current disposable income.
Under a progressive income tax system, the marginal income tax rate paid by taxpayers
A) declines as their incomes increase. B) rises as their incomes increase. C) is unchanged as their incomes increase. D) is unrelated to their incomes.