In the figure above, a factor that could cause the demand for bonds to decrease (shift to the left) is
A) an increase in the expected return on bonds relative to other assets.
B) a decrease in the expected return on bonds relative to other assets.
C) an increase in wealth.
D) a reduction in the riskiness of bonds relative to other assets.
B
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With a vertical LM curve, an increase in the money supply can be matched by an equal increase in money demand only through ________, which causes monetary policy to be particularly ________
A) a rise in income, strong B) a rise in income, weak C) a fall in the interest rate, strong D) a fall in the interest rate, weak
The U.S. dollar bill
a. is fiat money b. cannot be used as a medium of exchange c. is backed by gold d. cannot be used as a store of value e. cannot be used as a payment for debts
The full-employment level of real GDP is the level which can be produced with:
a. both given technology and productive resources, and cyclical unemployment equal to zero. b. both given technology and productive resources, and frictional and structural unemployment equal to zero. c. given technology and productive resources. d. frictional and structural unemployment equal to zero. e. cyclical unemployment equal to zero.
India's rapid growth can be explained by
A) reduced regulations and market-based reforms. B) investment in human capital from 1947 through 2017. C) the movement of workers from the agricultural sector to the manufacturing sector. D) an increase in labor force participation.