Changes in business inventories are known as
A) consumer durable.
B) consumption goods.
C) fixed investment.
D) inventory investment.
D
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In the money market, if the nominal interest rate is below the equilibrium level,
A) the demand for money curve will shift leftward. B) the quantity of money demanded exceeds the quantity of money supplied. C) the quantity of money supplied exceeds the quantity of money demanded. D) the supply of money curve will shift leftward. E) asset prices will rise.
Most markets involve the use of money for transactions because:
a. goods and services can be exchanged more easily with money than without it. b. goods and services cannot be exchanged without money. c. using money requires a double coincidence of wants. d. the transaction costs of using money are very high. e. the value of money remains same across countries over time.
Large sport utility vehicles (SUVs) add significantly to air pollution because they do not have to meet passenger auto emission standards. The purchase of an SUV
a. adds less to GDP since the pollution costs are subtracted from GDP. b. adds to nominal but not real GDP because of the pollution costs. c. is a net loss to GDP because the pollution costs are so large. d. increases GDP.
When the Federal Reserve carries out open market operations, it announces in advance the effect it wishes to have on the federal funds rate
a. True b. False Indicate whether the statement is true or false