The opportunity cost of the financial resources used to finance the purchase of capital is

A) the price of the capital goods purchased.
B) the real interest rate.
C) the quantity of investment demanded.
D) the supply of investment.
E) capital investment.

B

Economics

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When the Fed buys securities from a bank, what happens to the monetary base and the quantity of money? Which changes by more or do both change by the same amount?

What will be an ideal response?

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Suppose that the price level has risen but the government has not collected any seigniorage. Which of the following might have happened?

A. V rose, M and Y were constant. B. Y rose, M and V were constant. C. M rose, Y and V were constant. D. M rose, Y fell, V was constant.

Economics