In the monetary intertemporal model, the long-run effects of an increase in the level of money include
A) an increase in employment.
B) lower output.
C) higher real wages.
D) higher nominal wages.
D
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Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the
A) demand for Dell computers increases. B) demand for Apple computers increases. C) demand for Apple computers decreases. D) supply of Dell computers increases. E) demand for Dell computers decreases.
The Jeans Store sells 7 pairs of jeans per day when it charges $100 per pair. It sells 8 pairs of jeans per day at a price of $90 per pair. The marginal revenue of the eighth pair of jeans is
A) $20. B) $90. C) $100. D) $700.
Autonomous planned spending includes five components of which two are dependent on the interest rates. These are
A) government spending and autonomous tax revenue. B) the demand for exports and the demand for imports. C) autonomous consumption and planned investment. D) government spending and investment.
If an individual has $10,000 in a savings account paying 3% and the inflation rate is 2%, the nominal interest rate is
A) 3% and the real rate is 5%. B) 5% and the real rate is 7%. C) 5% and the real rate is 3%. D) 3% and the real rate is 1%. E) 5%.