According to modern economists, the velocity of money is affected by
a. interest rates and expected price changes.
b. expected price changes only.
c. interest rates only.
d. neither interest rates nor expected price changes.
a. interest rates and expected price changes.
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The World Bank
A) extends long-term loans for capital investment projects to developing nations. B) mediates contracts regarding minimum prices for various globally-traded commodities. C) determines the labor force participation rate in each of its member nations. D) determines the price level in each of its member nations.
A demand schedule provides
A) the quantities of a good people are willing to sell every year. B) the amount of a good a person wants to sell during a given time period. C) the alternative quantities demanded for a given time period at different possible prices. D) the amount of a good a person wants at different times of the day.
In the federal funds market, _____
a. banks make loans to the Fed b. banks make short-term loans to other banks c. banks make long-term loans to other banks d. the Fed makes short-term loans to private borrowers e. the Fed makes long-term loans to commercial banks
If the nominal interest rate is the same as the real interest rate, then inflation must be:
A. zero. B. higher than the nominal rate of interest. C. lower than the nominal rate of interest. D. negative.