If demand increases and supply decreases, the change in the equilibrium price will be ________, and the change in the equilibrium quantity will be ________.

With expected inflation equal to zero in the model, investment activity for an economy is:

a. a positive function of the nominal rate of interest. b. a negative function of the nominal rate of interest. c. constant in the face of differing nominal rates of interest. d. limited to the rate of growth of nominal GDP minus the inflation rate.

Wealth is to ________ as capital stock is to ________

A) investment; saving B) saving; investment C) income; net investment D) income; earnings E) saving; depreciation