If food is on the vertical axis and shelter on the horizontal axis, then the equation for the budget line can be expressed as
A. PsS + Pf = M.
B. F = Pf - (Ps/Pf)S.
C. S = M/Ps.
D. S = M/Ps - (Pf/Ps)F.
Answer: D
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Which of the following is always measured in prices from a base-year?
a. both nominal and real GDP. b. nominal but not real GDP. c. real but not nominal GDP. d. neither nominal nor real GDP.
The value of the deposit multiplier is increased if individuals hold all their money in cash.
Answer the following statement true (T) or false (F)
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A. 0.025 B. 0.020 C. 0.035 D. 0.030