Because the quantity theory of money tells us how much money is held for a given amount of aggregate income, it is also a theory of
A) interest-rate determination.
B) the demand for money.
C) exchange-rate determination.
D) the demand for assets.
B
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Which of the following did NOT significantly exacerbate the banking crisis of the early 1930s?
A) the Fed's decision not to make loans to insolvent banks B) the large number of small, poorly diversified banks C) the large number of rural banks that held agricultural loans during a time of falling commodity prices D) the large amount of fraud carried out by bank managers
We observed that the price of a good rises and the quantity purchased also rises. Everything else being equal, it is consistent that
a. the price of a substitute good fell. b. the price of a complement rose. c. income rose. d. costs of inputs increased.
In the long-run perfectly competitive equilibrium, firms produce at the minimum of average total cost.
Answer the following statement true (T) or false (F)
Macroeconomics often relies on microeconomic analysis because
A. microeconomics is older than macroeconomics. B. microeconomic theory can be tested and macroeconomic theory cannot be tested. C. the effects of macroeconomic subjects such as inflation and unemployment are independent of individual consumers and firms. D. all aggregates are made up of individuals and firms.