In the classical system, the quantity of money
a. determines the price level and, for a given real income, the level of nominal income.
b. does not affect the equilibrium values of output, employment, and the interest rate.
c. affects the equilibrium values of output, employment, and the interest rate.
d. Both a and b
e. Both a and c
D
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When banks hold more reserves than are required, such reserves are called
A) total reserves. B) required reserves. C) excess reserves. D) loan reserves.
Which of the following is included in the calculated gross domestic product? a. Mr. Kelly buys a used lawn mower from his neighbor Mr. Templeton
b. A local ice cream store sells $17,000 worth of cones and sundaes on July 4th. c. Suzanne buys a love seat and chair for $85 at the yard sale on the corner. d. Farmer Fred sells his second tractor to his son.