If the nominal money supply grows 10%, the inflation rate is 6%, and the income elasticity of money demand is 1.0, then real income growth equals
A. 1%.
B. 2%.
C. 3%.
D. 4%.
Answer: D
You might also like to view...
When the price level ________, equilibrium expenditure ________ and the quantity of real GDP demanded ________
A) rises; decreases; increases B) rises; increases; increases C) rises; increases; decreases D) falls; increases; decreases E) falls; increases; increases
If the demand for KFC chicken is price elastic, a fall in the price of KFC chicken will raise the total revenue
Indicate whether the statement is true or false
If the capital stock increases, then the economy can produce ____ output with the ____ amount of labor
a. same, same b. less, same c. more, same d. less, less
A person's tax obligation divided by her income is called her
a. marginal social tax rate. b. marginal private tax rate. c. marginal tax rate. d. average tax rate.