The demand for money schedule shows the ________ relationship between money demand and the nominal interest rate which means that as the ________
A) negative; opportunity cost of holding money increases, the nominal interest rate increases
B) negative; nominal interest rate increases, the opportunity cost of holding money increases
C) positive; nominal interest rate increases, the opportunity cost of holding money increases
D) positive; nominal interest rate increases, the opportunity cost of holding money decreases
E) negative; nominal interest rate increases, the opportunity cost of holding money decreases
B
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In the above figure, if the minimum wage is equal to ________, there would be ________ hours of labor employed
A) $8 per hour; 4,000 B) $8 per hour; 2,000 C) $6 per hour; 3,000 D) $4 per hour; 2,000
A decrease in interest rates
A) increases the value of the dollar, net exports, and equilibrium output. B) increases the value of the dollar, reducing net exports and equilibrium output. C) reduces the value of the dollar, net exports, and equilibrium output. D) reduces the value of the dollar, increasing net exports and equilibrium output.