Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to save equal when real disposable income equals $14,000?

In the Cambridge version of the Quantity Theory of Money, the amount of real money balances __________ after an increase in the nominal money supply

A) increases B) decreases C) is unchanged D) Cannot be determined from the information given.

Do people make decisions on the basis of the nominal interest rate or the real interest rate? What is the relationship between the two interest rates?

What will be an ideal response?