"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.
B
You might also like to view...
Jacqueline has a Ph.D. in economics. She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field. The type of unemployment she is experiencing is: a. frictional unemployment. b. structural unemployment. c. seasonal unemployment. d. cyclical unemployment
e. underemployment.
Picture in your mind's eye the graph of a profit-maximizing monopolist. If its cost curves—both ATC and MC—shift upward while its demand curve remains unchanged, the monopolist will
a. decrease price and increase output b. decrease both price and output c. increase price and decrease output d. increase both price and output e. keep both price and output at the same level