Monetary neutrality implies that an increase in the quantity of money will
a. increase employment.
b. increase the price level.
c. increase the incentive to save.
d. increase the real interest rate.
b
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The total money supply is largely determined by
A) open market operations. B) changes in the reserve requirement. C) the lending behavior of commercial banks. D) the deficit policy of the Treasury.
The largest portion of any nation's balance of payments current account is the
A. importing and exporting of gold. B. importing and exporting of services. C. importing and exporting of capital goods. D. importing and exporting of merchandise goods.
Because resources are scarce, the opportunity cost of investment in capital is
A. forgone present consumption. B. infinite. C. zero. D. forgone future consumption.
Evidence suggests that income inequality in India is
A. increasing relatively rapidly. B. increasing relatively slowly. C. decreasing relatively slowly. D. decreasing relatively rapidly.