Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to rise and monetary base to remain the same.
b. Demand for real goods and services to remain the same and M2 money supply to remain the same.
c. Demand for real goods and services to remain the same and M2 money multiplier to fall.
d. Demand for real goods and services to remain the same and M2 money supply to rise.
.A
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Suppose that the consumer price index in Eastlandia rises from 150 to 159 over the past year, and that the city sets its car registration prices so that real prices stay the same. If the cost to register a car was $50 last year, how much would it cost this year, in nominal terms?
a) $50 b) $53 c) $56 d) $59
If the interest rate were 12.5 percent, how much would people be willing to pay for a stock that was certain to yield a $20 per share stream of net earnings continuously in the future?
a. $20 b. $25 c. $160 d. $250