According to the assumptions of the quantity theory of money, if the money supply increases 5 percent, then
a. both the price level and nominal GDP would rise by 5 percent.
b. the price level would rise by 5 percent and nominal GDP would be unchanged.
c. the price level would be unchanged and nominal GDP would rise by 5 percent.
d. both the price level and nominal GDP would be unchanged.
a
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Suppose the IS curve shifts back and forth. With a flat LM curve you get __________ variability in the output and __________ variability in the interest rate than you get with a steep LM curve
A) more; more B) more; less C) less; more D) less; less
The cumulative probability distribution shows the probability
A) that a random variable is less than or equal to a particular value. B) of two or more events occurring at once. C) of all possible events occurring. D) that a random variable takes on a particular value given that another event has happened.
A monopolistic competitor produces 100 units of a good at a per-unit cost of $22. If it charges a price of $19 per unit of the good, it will ________
A) earn zero economic profits in the short run B) incur a loss of $300 in the short run C) earn a profit of $1,900 in the short run D) incur a loss of $100 in the short run
Any transaction that leads to a payment by a country's residents or government is a(n)
A) debt. B) asset. C) deficit item. D) surplus item.