Suppose the velocity of money decreases because consumers become more reluctant to spend. If the money supply is unchanged and prices can't adjust in the short run (sticky prices), then according to the quantity theory of money, what must happen to short-run output?
What will be an ideal response?
It will decrease
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A machine cost $15,000 to install, and has a resale value one year later of $12,000. If the real interest rate is 10%, then the user cost of capital is ________
A) $4,500 B) $1,500 C) $3,000 D) $1,200
The difference between the simple Keynesian model and the IS-LM curve model is that the latter
a. excludes a money market and interest rates. b. includes a commodity market and flexible income. c. excludes a commodity market and interest rates. d. includes a money market and flexible interest rates.Figure 7-3
The majority of export in the U.S. come from:
A. consumption goods and automotive vehicles. B. capital goods and industrial supplies. C. capital goods and consumption goods. D. industrial goods and consumption goods.
Medicare was established in
a. 1925 b. 1945 c. 1965 d. 1985 e. 1995