An increase in real GDP causes the demand for real money balances to
A) rise.
B) fall.
C) remain unaffected.
D) rise, fall, or remain unaffected depending on the interest rate at the time.
A
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The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, what is the person's expected wealth?
A) $10,000 B) $20,000 C) $30,000 D) $40,000
The marginal rate of technical substitution of labor for capital (MRTSLK) measures
a. the amount of capital that can replace a unit of labor without affecting the firm's output. b. the additional output attributable to a 1% increase in labor and capital usage. c. the rate at which the firm can exchange labor for capital in the input markets. d. the slope of the firm's expansion path.