Suppose the real money demand function is
Md/P = 2400 + 0.2Y - 10,000 (r + ?e).
Assume M = 5000, ?e = .03, and Y = 5000. If the price level were to decrease from 2.5 to 2.0, then the real interest rate would decrease by how many percentage points (assuming Md, ?e, and Y are unchanged)?
A) 4
B) 5
C) 9
D) 14
B
Economics
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Refer to the scenario above. Plutoland's current account would show a balance of ________
A) $14 billion B) -$6 billion C) -$10 billion D) $4 billion
Economics
A consumer values a car at $525,00 . and a producer values the same car at $485,000 . If sales tax is 8% and is levied on the seller, then the sellers bottom line price is
a. $527,000 b. $523,800 c. $525,000 d. $500,000
Economics