If the proportion of GDP that people choose to hold in the form of money balances is 0.25, then a $100 increase in the money supply will lead to a rightward shift in the LM curve in the amount of

A movement from one point on a production possibilities frontier to another represents

A) unemployment. B) a tradeoff. C) an advance in technology. D) full employment of labor but not capital. E) a free lunch.

Based on the Saving-Investment Diagram, if the world real interest rate is indicated by A, then ________

A) the difference between values G and E measures the trade surplus B) the difference between values G and F measures the trade surplus C) the domestic real interest rate is indicated by B D) desired saving has decreased E) none of the above