If the growth rate of the money supply in an economy is 5%, the growth rate of output is 2%, and the velocity of money is constant, what will the inflation rate in this economy be?

To calculate the opportunity cost per unit, you divide the decrease in the quantity of the forgone item by the

A) decrease in the quantity of the other item. B) increase in the quantity of the other item obtained. C) price of the item obtained. D) price of the item forgone. E) price of the item obtained and then multiply by the price of the item forgone.

As firms' expected profit from new capital projects falls,

A) the supply of loanable funds will shift rightward. B) the supply of loanable funds will shift leftward. C) the demand for loanable funds will shift rightward. D) the demand for loanable funds will shift leftward. E) projects must become more profitable