Which of the following is true?
a. The quantity of money demanded varies inversely with the nominal rate of interest
b. Money market equilibrium occurs at that nominal interest rate where the quantity of money demanded equals the quantity of money supplied.
c. Rising national income will shift the demand for money to the right, leading to a new higher equilibrium nominal interest rate.
d. All of the above are true.
d
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Explain the four assumptions on which the theory of consumer choice is based. Select one of these assumptions and explain what would happen if this assumption did not hold true
What will be an ideal response?
Assume that the demand curve for a commodity is represented by the equation Q = 25 - 1.3P. Calculate the change in total spending for this commodity when price falls from $4.50 to $4.20
a. Total spending rises by $4.11. b. Total spending declines by $4.11. c. Total spending declines by $8.20. d. Total spending rises by $8.20.
If the economy has just experienced a severe recession, which type of Fed policymaker would be more focused on a quick recovery?
A) Doves B) Hawks C) Both doves and hawks D) Neither doves nor hawks