The demand for money is
A) positively related to the nominal interest rate.
B) positively related to the real interest rate.
C) positively related to the price level.
D) negatively related to real GDP.
E) negatively related to the price level.
C
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Suppose biochemists discover an enzyme that can double the amount of ethanol that may be derived from a given amount of biomass. Based on this technological development, we expect the:
A) supply curve for ethanol to shift leftward. B) supply curve for ethanol to shift rightward. C) demand curve for ethanol to shift leftward. D) demand curve for ethanol to shift rightward.
Firm A is a monopsonist that faces a labor supply elasticity of 2.4 whereas Firm B is a monopsonist that faces a labor supply elasticity of 1.4. Which of these monopsonists has a higher markup over wage?
A) Firm A B) Firm B C) They both pay the same. D) It is impossible to tell which pays a higher wage.