When individuals make decisions about how much money and bonds to hold, which of the following variables affects those decisions?
A) the real interest rate only
B) the nominal interest rate only
C) the expected inflation rate only
D) either the real interest rate or the expected inflation rate
E) both the nominal and real interest rates
B
Economics
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The k-percent rule, an example of a money targeting rule, relies on a relatively stable
A) supply of money. B) real interest rate. C) demand for money. D) federal funds rate. E) nominal GDP.
Economics
An increase in the price of ice cream is likely to cause:
A. a movement to the left along the demand curve for ice cream. B. an inward shift of the demand curve for ice cream. C. an outward shift of the demand curve for ice cream. D. a movement to the right along the demand curve for ice cream.
Economics