The expenditure approach to GDP accounting includes:

Optimization in differences analyzes:

A) the total net benefits of the alternative that looks the most attractive. B) the change in the net benefits resulting from a shift from one alternative to another. C) only the costs of an alternative and not the benefits. D) the total net benefits of different alternatives.

When the opportunity cost of holding money increases, then

A) the quantity of money supplied increases. B) people want to hold more money. C) the real interest rate falls. D) the nominal interest rate falls. E) people want to hold less money.

Refer to Figure 10.9. Other things equal, a decrease in the nominal money supply by the Fed is best represented as a change in equilibrium from

A) point A to point B. B) point A to point D. C) point C to point B. D) point C to point D.

Which of the following is true for the European Central Bank (ECB)?

A) its executive board meets less often than the FOMC B) the members of its executive board have lifetime appointments C) it is a more decentralized system than the Federal Reserve D) all of the above E) none of the above