You are given three options. You may have the balance in an account that has been collecting 5 percent interest for 20 years, the balance in an account that has been collecting 10 percent interest for 10 years, or the balance in an account that has been collecting 20 percent interest for five years. Each account had the same original balance. Which account now has the lowest balance?

The portfolio theories of money demand state that the demand for real money balances is ________ related to income and ________ related to the nominal interest rate

A) positively; negatively B) positively; positively C) negatively; negatively D) negatively; positively

Keynesians and monetarists share the belief that

a. recessions are caused by falls in aggregate demand. b. the demand for money is stable. c. excess demand is a chronic problem in modern economies. d. the Federal Reserve is responsible for most recessions. e. stabilization policy is beneficial.