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

Economics

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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

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Investment is a(n) ________ that changes the ________ of capital.

A. stock; flow B. liability; asset C. asset; liability D. flow; stock

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An inferior good is one that consumers buy in smaller quantities when incomes rise.

Answer the following statement true (T) or false (F)

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If the price of peaches, a substitute for plums, increases the demand for plums will decrease

Indicate whether the statement is true or false

Economics