Consider an economy where the growth rate of real GDP is 6% and the growth rate of money supply is 8%. If the quantity theory of money holds, the inflation rate in the economy will be:

Which of the following is true? The federal government's budget

a. was always in surplus until the 1980s b. is in deficit now but has been in surplus in most of the past 40 years c. has been virtually perfectly balanced for the past 5 years d. deficit has averaged around zero for the last several decades e. switched from deficits to surpluses in the late 1990s

The estimated demand for a good is = 4800 - 16P - 0.65M - 1.5PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. If income decreases by $2,000, all else constant, quantity demanded will ________ by ________ units.

A. increase; 1.30 units B. increase; 1,300 units C. decrease; 65 units D. decrease; 6.5 units