When the nominal interest rate increases, the
A) demand for money increases and the demand for money curve shifts rightward.
B) demand for money decreases and the demand for money curve shifts leftward.
C) quantity of money demanded increases and there is a movement upward along the demand for money curve.
D) supply of money curve shifts rightward.
E) quantity of money demanded decreases and there is a movement upward along the demand for money curve.
E
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If a union wishes to maximize the number of union members employed, it will
A) accept the competitive wage. B) set a wage below the competitive wage. C) set a wage where the elasticity of demand for labor equals one. D) set a wage above the competitive wage.
If the CPI in year 2 equals 110 and the CPI in year 3 equals 121, it can be concluded that consumer prices:
A. rose from year 2 to year 3 by 21 percent. B. rose from year 2 to year 3 by 10 percent. C. are the same in year 2 as in the base year. D. rose from year 2 to year 3 by 11 percent.