The LM curve will become steeper when
a. there is a larger money demand increase per unit increase in income.
b. money demand is less sensitive to the interest rate.
c. money demand is more sensitive to the interest rate.
d. Both a and b
e. Both a and c
D
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From 1980 to the mid 1990s the number of independent banking organizations in the United States
A) rose about 10%. B) stayed roughly constant. C) fell about 10%. D) fell about 35%.
In an attempt to separate the quality changes from price changes of a product over time, the BLS does a:
A. hedonic quality adjustment by estimating what the price of the item would be without the improved features. B. qualitative market adjustment by estimating the price of the items in all markets. C. qualitative price change by estimating the price of all possible brands of the items. D. hedonic quality adjustment by estimating the price of similar goods.
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.
An efficient market is a market in which
A. profit opportunities are eliminated almost instantaneously. B. everyone always gets what they want. C. opportunity costs are zero. D. profits are always very high and persistent.