An increase in nominal GDP will:
a. Increase the transactions demand and total demand for money
b. Decrease the transactions demand for money but increase the total demand for money
c. Decrease the transactions demand and total demand for money
d. Increase the transactions demand for money but decrease the total demand for money
a. Increase the transactions demand and total demand for money
You might also like to view...
At a long-run equilibrium in monopolistic competition, price equals
A) average total cost. B) marginal cost but not marginal revenue. C) marginal revenue but not marginal cost. D) zero. E) marginal revenue and marginal cost.
If the consumption function is expressed as C = a + mpc × YD, then "a" represents
A) autonomous consumer expenditure. B) the marginal propensity to consume. C) the expenditure multiplier. D) disposable income.
During the Prohibition period (when the production and sale of alcohol was illegal),
a. the quality of alcohol sold became less reliable. b. the murder rate increased. c. gangsters dominated the alcohol trade. d. all of the above occurred.
If either the production or consumption of a good generates an external cost, then the market equilibrium quantity will be:
A. greater than the socially optimal quantity. B. socially optimal. C. equal to zero. D. less than the socially optimal quantity.