Nominal income is equal to
A. the aggregate money multiplier divided by the money supply.
B. the aggregate price level multiplied by real aggregate income.
C. the real aggregate price level divided by the nominal interest rate.
D. aggregate money demand multiplied by aggregate money supply.
Answer: B
You might also like to view...
Which of the following is NOT true of the yield curve for U.S. Treasury securities?
A) Typically, it slopes upward. B) It depicts the relationship among yields on securities of different maturities. C) Typically, it shifts up or down rather than twists. D) Typically, it slopes downward.
An increase in the money stock has no effect on equilibrium income whenever the
a. IS curve is horizontal. b. IS curve is vertical. c. LM curve is vertical. d. LM curve is horizontal.
Say's Law
a. is valid only in a simple economy without financial markets b. led economists during the 1920s to encourage the government to adopt flawed economic policies that led to the Great Depression c. assures us that in the aggregate, firms are able to sell their output so that full employment can be sustained d. tells us that in the long run, markets clear e. tell us that firms must carefully monitor consumer spending and saving in order not to produce more than consumers are willing to purchase
The Federal Reserve System is made up of twelve regional banks owned by
A) commercial banks in the respective districts that have chosen to be members of the Fed. B) Wall Street investors. C) the Board of Governors appointed by the President. D) the U.S. Treasury.