The above figure shows the apartment market in Big City. What is the equilibrium rent in Big City?

"Real money balances" refers to

A) the currency part of the total money supply. B) the money supply divided by the price level. C) the money supply times one minus the interest rate. D) the non-interest-earning part of the money supply.

In the 1990s, many people had rising incomes. At the same time, there was a rise in cost of wood. Holding other factors constant, the demand for houses_________ and the supply for houses_________

a. Increase, increase b. Increase, decrease c. Decrease, increase d. Decrease, decrease