A decrease in the supply of money will lead to a(n)
A) increase in equilibrium real GDP and an increase in the equilibrium interest rate.
B) increase in equilibrium real GDP and a decrease in the equilibrium interest rate.
C) decrease in equilibrium real GDP and an increase in the equilibrium interest rate.
D) decrease in equilibrium real GDP and a decrease in the equilibrium interest rate.
Ans: C) decrease in equilibrium real GDP and an increase in the equilibrium interest rate.
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Inflation rates in the U.S. from 2000 to 2012 were within the range of:
A. 0% - 4% B. 3% - 8% C. 8% - 15% D. 12% - 25%
Exhibit 15-1 Production possibilities curves
In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. Suppose Nabia produces at point A on its PPC. How many units of wheat is the country able to produce?
A. 15. B. 60. C. 40. D. 20.