Under the Cambridge cash balance approach, money demand is determined by
A) nominal income.
B) real income.
C) the saving rate.
D) velocity.
A
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Which of the following is the best example of second-degree price discrimination?
a. A car salesperson's attempts to discover and charge the highest price that the customer is willing to pay. b. A sub shop that gives you a half-price sandwich on every sixth visit. c. Manufacturers' use of discount coupons printed in Sunday newspapers. d. Polaroid cameras and film.
In the short run, an increase in the money stock growth rate
a. moves the economy up the short-run Phillips curve. b. moves the economy down the short-run Phillips curve. c. shifts the short-run Phillips curve to the right. d. results in a decline in the natural rate of unemployment and a rise in the inflation rate. e. both b and d are correct.
Using the resource cost-income approach, indirect business taxes have to be added to get gross domestic product because the
a. selling price of a product includes these taxes, which are income to the government . b. selling price of a product includes these taxes, which are resource payments. c. selling price of a product excludes these taxes and therefore they have to be added. d. selling price includes these taxes which are actually not income to any sector of the economy.
Fannie Mae and Freddie Mac:
a. Are government sponsored entities (GSE) b. Have a mandate to develop a secondary market in U.S. mortgages. c. Suffered severe economic losses and are now under conservatorship. d. All of the above.