Using the quantity theory of money, in the long run a 3 percent increase in the quantity of money leads to a 3 percent
A) increase in real GDP.
B) decrease in the price level.
C) increase in the price level.
D) decrease in the real interest rate.
E) increase in the real interest rate.
C
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Suppose there are two economies that are identical in every way with the following exception. Economy A has an unemployment compensation system while economy B does NOT have an unemployment compensation system
Now suppose both economies experience the same drop in planned investment. Which of the following is correct? A) Real GDP will fall more in economy A than in economy B. B) Real GDP will fall more in economy B than in economy A. C) Real GDP will fall the same in both economies. D) The effect on the relative size of the reduction in real GDP in the two economies is ambiguous.
Suppose you make a $5,000 investment that will return $3,000 in year 2 and another $3,500 in year 4. With an interest rate of 4.5%, what is the NPV of this project?
A. $247.34 B. $682.16 C. $1,500.00 D. $2,162.50
What is the domestic exchange equation of Italy?
Which of the following scenarios describes a tariff in the Tea Republic?
a. Commercial tea producers received a business tax credit of $2,500 per year. b. A fee of $1 per pound was charged on foreign tea entering the country for sale. c. A federal program offered $2,000 to new tea growing and processing operations. d. The government received $0.05 for every cup of brewed tea sold to consumers.