Using the cash balance approach with k = 1/2 and GDP equal to $600 billion, cash balances must be equal to
A) $1200 billion.
B) $600 billion.
C) $300 billion.
D) More information is needed to answer this question.
C
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
Investment is a(n) ________ that changes the ________ of capital.
A. stock; flow B. liability; asset C. asset; liability D. flow; stock
An inferior good is one that consumers buy in smaller quantities when incomes rise.
Answer the following statement true (T) or false (F)
If the price of peaches, a substitute for plums, increases the demand for plums will decrease
Indicate whether the statement is true or false