If the quantity of money demanded exceeds the quantity of money supplied, then
A. you can make no conclusions about the relative supply and demand of nonmonetary assets.
B. the quantity of nonmonetary assets demanded will still equal the quantity supplied, all else being equal.
C. the quantity of nonmonetary assets supplied exceeds the quantity demanded.
D. the quantity of nonmonetary assets demanded exceeds the quantity supplied.
Answer: C
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Consider the monopolist depicted in the figure above. The profit maximizing level of output for a single-price monopolist is
A) 7. B) 11. C) 13. D) 22.
Advocates of flexible exchange rates claim that under flexible exchange rates, a currency
A) appreciation caused by increasing the money supply would reduce unemployment by lowering the relative price of domestic products. B) depreciation caused by increasing the money supply would increase unemployment by lowering the relative price of domestic products. C) depreciation caused by increasing the money supply would reduce unemployment by lowering the relative price of domestic products. D) depreciation caused by increasing the money supply would reduce unemployment by increasing the relative price of domestic products. E) depreciation cause by decreasing the money supply would not effect unemployment, but would increase the relative price of domestic products.
Which of the following is an example of a positive statement?
A. NCAA Football should have adopted a playoff system 10 years ago. B. An increase in minimum wage results in higher teenage unemployment. C. No oneshould be allowed to carry guns into the classroom. D. Cats are better pets than dogs.
Which of the following situations would cause a period of stagflation at a later point in time?
a. a recessionary gap b. a reduction in investment spending c. an increase in technological development d. an inflationary gap