In which model does there exist a tradeoff between higher inflation and lower unemployment?
a. monetarist
b. real business cycle.
c. new classical
d. a and b.
e. a tradeoff exists in all of the above.
D
Economics
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According to the classical model, desired saving is
A) affected by the money illusion at low income levels. B) identical to the demand for saving at each level of real GDP. C) a function of real GDP. D) equal to desired investment.
Economics
Suppose Marquette Bank and Trust has $10 million in total deposits and the required reserve ratio is 7%. How many dollars can the bank use to seek profit opportunities?
A) $9.3 million B) $7 million C) $930,000 D) $700,000 E) 0. Banks cannot seek profits.
Economics