The routes or channels that ripple effects created in the money market travel to impact the goods-and-services market are known as
A) the transmission lag.
B) monetary policy.
C) the liquidity trap.
D) the transmission mechanism.
D
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The demand for money curve shifts rightward if
A) the price level increases. B) real GDP increases. C) the nominal interest rate increases. D) the real interest rate decreases.
Which of the following describes the difference between the market demand curve for a perfectly competitive industry and the demand curve for a firm in this industry?
A) The market demand curve is a horizontal line; the firm's demand curve is downward sloping. B) The market demand curve is downward sloping; the firm's demand curve is a vertical line. C) The market demand curve can not have a constant slope; the firm's demand curve has a slope equal to zero. D) The market demand curve is downward sloping; the firm's demand curve is a horizontal line.