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

Assume that an economy is in equilibrium when the arrival of immigrants causes an increase in the supply of labor

Once the economy has adjusted to its new equilibrium, and assuming that the supply of capital remains unchanged, which of the following has decreased? A) the share of capital income in national income B) the share of labor income in national income C) national income D) the rental price of capital E) none of the above

Which of the factors does not cause there to be different interest rates?

a. risk of default b. length of time of the loan c. administration costs d. all of the above explain the reasons there are different interest rates