An increase in the interest rates will
a. cause people to hold less money, which, in turn, means that the velocity of money increases.
b. cause people to hold less money, which, in turn, means that the velocity of money decreases.
c. cause people to hold more money, which, in turn, means that the velocity of money increases.
d. cause people to hold more money, which, in turn, means that the velocity of money decreases.
a
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We translate nominal income in any past year into constant, real dollars to:
A. understand what a salary in the past would equal in current dollars to determine how much more we have actually gained in purchasing power. B. see what an income we were earning in the past would be equivalent to today. C. allow us to compare changes in purchasing power over time. D. All of these statements are true.
In the capital market, households ________ supply the financial resources to firms that allow them to purchase ________.
A. indirectly; labor B. indirectly; capital C. directly; capital D. indirectly; land
Which of the following is NOT an effect from a change in the federal funds rate?
A) change in the real interest rate B) change in investment C) change in government expenditures D) change in aggregate demand E) change in the quantity of money
According to neuroeconomists, our logical brain knows we should spend as much as possible when we have money
a. True b. False Indicate whether the statement is true or false