Suppose that the price level has risen but the government has not collected any seigniorage. Which of the following might have happened?
A. V rose, M and Y were constant.
B. Y rose, M and V were constant.
C. M rose, Y and V were constant.
D. M rose, Y fell, V was constant.
Ans: A. V rose, M and Y were constant.
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How much money would you have to put into a savings account today to be worth $500 three years from now at a market rate of interest equal to 8 percent?
A) $397 B) $351 C) $420 D) $459
Which of the following is a difference between a perfectly elastic demand curve and a perfectly inelastic demand curve?
a. A perfectly elastic demand curve is parallel to the horizontal axis, while a perfectly inelastic demand curve is parallel to the vertical axis. b. A perfectly elastic demand curve is parallel to the vertical axis, while a perfectly inelastic demand curve is parallel to the horizontal axis. c. A perfectly elastic demand curve is downward sloping, while a perfectly inelastic demand curve is upward sloping. d. A perfectly elastic demand curve is upward sloping, while a perfectly inelastic demand curve is downward sloping.