In which of the following cases would the quantity of money demanded be largest?
a. r = 0.03, P = 1.2
b. r = 0.03, P = 1.3
c. r = 0.04, P = 1.2
d. r = 0.05, P = 0.9
b
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From an economic perspective, a student's decision to go to the movies instead of studying for a test indicates that in the student's thinking the marginal
A. benefit of studying is greater than the marginal benefit of going to the movies. B. cost of going to the movies is less than the marginal benefit of going to the movies. C. benefit of studying is greater than the marginal cost of studying. D. cost of going to the movies is greater than the marginal cost of studying.
If you wanted to measure whether the output of an economy was increasing or decreasing across time periods, you would use the real GDP data rather than the nominal GDP data because
a. exports are excluded from real GDP but not nominal. b. real GDP incorporates the impact of federal budget deficits and surpluses; nominal GDP does not. c. real GDP reflects the impact of transfer payments on the economy, but nominal GDP does not. d. real GDP adjusts for changes in the general level of prices, but nominal GDP does not.
A shift in short-run aggregate supply from SRAS2 to SRAS1 could have been the result of
A. a decrease in the price level. B. an increase in the price level. C. an increase in wage rates. D. a decrease in wage rates.
A bank has $1000 in deposits and maintains a 12 percent reserve ratio. Its reserves are $_____
Fill in the blank(s) with correct word