In the simple liquidity-preference model, the money supply curve is:
A. vertical, and moves when people change their rate of savings.
B. horizontal, and moves at the sole discretion of the Fed.
C. vertical, and moves at the sole discretion of the Fed.
D. horizontal, and moves when people change their rate of savings.
Answer: C
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Your college bookstore buys a used textbook for $25 and sells it to you for $125. What happens to GDP?
A) It increases by $25. B) It increases by $100. C) It increases by $125. D) It increases by $150.
According to the Malthusian prediction in the long run: a. growth in real output of an economy would eventually become negative. b. growth in real output of an economy will eventually reach a stable level. c. scarcity would be completely eliminated
d. poverty would be completely eliminated.