A specific type of loan that is used to buy real estate:

In the short run, when the central bank increases the quantity of money, what happens to real balances?

a. They do not change, since prices will rise by the same proportion. b. They will fall, since prices will rise by a greater proportion. c. They will rise, since prices overall will fall. d. They will rise, since prices will not change in the short run.

Which is the most accurate statement?

A. Doctors' incomes are high because the demand for their services is high relative to the supply. B. Doctors' incomes are high because the supply of their services is high relative to the demand. C. Doctors' incomes are low because the demand for their services is high relative to the supply. D. Doctors' incomes are low because the supply of their services is high relative to the demand.