Based on the graph showing a reduction in the growth of the money supply, if the economy maintains a 3 percent inflation rate for a fairly long time, people’s expectations will adjust and move the economy from ______.
a. point E to point D
b. point E to point F
c. point F to point D
d. point F to point E
b. point E to point F
Economics
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If the money supply is $2 trillion and velocity is 5, then nominal GDP is
A) $1 trillion. B) $2 trillion. C) $5 trillion. D) $10 trillion.
Economics
Holding all other factors constant, consumers demand more of a good the
A) higher its price. B) lower its price. C) steeper the downward slope of the demand curve. D) steeper the upward slope of the demand curve.
Economics
Ricardian equivalence implies a tax multiplier of zero
a. True b. False
Economics
Which one of the following is not considered a financial intermediary?
A) a bank B) a pension fund C) an insurance company D) a credit counselor
Economics