Equilibrium in the money market means that the quantity of money people are holding equals
a. their entire wealth
b. their entire income
c. the quantity of money that they want to hold
d. the money supply
e. the value of bonds in their financial portfolios
C
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If real GDP was 100 in 2015 and 104.4 in 2016, the growth rate of real GDP between 2015 and 2016 was
A) 2.2 percent. B) 4.4 percent. C) 100 percent. D) 102.2 percent.
Refer to Figure 10-5. The consumer can afford consumption bundles
A) r, s, t, and u. B) r, s, v, and u. C) s, v, t, and u. D) s, v, and u only.
During World War I (1914–18), the government did not have to rely on which one of the following reallocation devices?
(a) Inflation (b) Taxes (c) Borrowing (d) Rationing
The tendency of markets to automatically gravitate toward equilibrium is an application of the:
A. Incentive Principle. B. Principle of Comparative Advantage. C. Scarcity Principle. D. Cost-Benefit Principle.