Which of the following is correct?
a. The classical dichotomy separates real and nominal variables.
b. Monetary neutrality is the proposition that changes in the money supply do not change real variables.
c. When studying long-run changes in the economy, the neutrality of money offers a good description of how the world works.
d. All of the above are correct.
d
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If the quantity of money demanded exceeds the quantity of money supplied, then
A) the quantity of nonmonetary assets demanded exceeds the quantity supplied. B) the quantity of nonmonetary assets supplied exceeds the quantity demanded. C) the quantity of nonmonetary assets demanded will still equal the quantity supplied, all else being equal. D) you can make no conclusions about the relative supply and demand of nonmonetary assets.
Refer to the information above. The "simple" accelerator model, first derived by American economist J.M. Clark in 1917, comes from setting
A) j = 0. B) j = 1. C) v* = 0. D) v* = 1.
When accounting profits are positive, economic profits
A) must be positive. B) will be negative. C) will equal zero. D) could be positive, negative or zero.
The child-care credit goes
A. directly to child-care centers. B. to all households spending money on child, and elder care so that they may work. C. directly to the states. D. directly to children under 6.