If credit card usage exhibits a sharp increase, there is
A) an upward movement along the demand for money curve.
B) a rightward shift of the demand for money curve.
C) a leftward shift of the demand for money curve.
D) a downward movement along the demand for money curve.
E) a leftward shift of the supply of money curve.
C
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It is often observed that the prices charged for gasoline by the various gas stations in a particular city tend to move together very closely. Is this an example of tacit collusion that should be prosecuted in the United States? Why or why not?
What will be an ideal response?
In the two-period model, r denotes
A) real income. B) the nominal interest rate. C) the real interest rate. D) current taxes.
Which of the following is true of the equation of exchange?
a. It states that the product of the price level and velocity of money is equal to real GDP. b. It states that aggregate demand in an economy is equal to total investment spending. c. It states that money supply times velocity of money equals real GDP d. It states that velocity of money is equal to the ratio of nominal GDP and money supply. e. It changes to the quantity theory of money if the price level is assumed to be constant.
In the Solow model, if f(k) = 8k0.5, s = 0.2, n = 0.3, and d = 0.1, what is the value of k at equilibrium?
A. 9 B. 4 C. 1 D. 16