The portfolio theories of money demand state that the demand for real money balances is ________ related to income and ________ related to the nominal interest rate
A) positively; negatively
B) positively; positively
C) negatively; negatively
D) negatively; positively
A
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The marginal rate of substitution is
A) the rate at which the consumer will give up one good to get an additional unit of another good while remaining on the same indifference curve. B) the rate at which utility increases as the consumer increases purchases of a good, holding purchases of the other good constant. C) the rate at which a consumer will exchange a good for income holding prices constant. D) None of the above answers is correct.
Discuss the quantity theory of money. Be sure to mention the velocity of circulation and the equation of exchange
What will be an ideal response?
When an inflationary gap exists, the job prospects of new college graduates are
a. very dim. b. somewhat encouraging. c. worse in comparison to a recessionary gap. d. excellent.
Answer the following questions true (T) or false (F)
1. In the long run, all of a firm's inputs are variable. 2. Costs that change as output changes are called incremental costs. 3. Economic costs include implicit costs but not explicit costs.