In the basic closed-economy ISLM model, the money market can be described by the

Suppose the public holds $200 billion in M2 and the velocity of the M2 money supply is 5. What is the value of nominal GDP?

A) $500. B) $1,000. C) $1,500. D) That information cannot be determined.

In Brazil, the income elasticity of demand for dairy is 0.7 and for fruit and vegetables it is 0.5. These elasticities mean that if the income of Brazilians decreases, they will purchase ________ dairy and ________ fruits and vegetables

A) less; less B) more; more C) more; less D) less; more