In Figure 4-5 above, at what income would the interest rate that brings about money market equilibrium cause unwanted inventories of commodities to accumulate?

According to the equation of exchange, if velocity and real GDP do not change, a 3 percent increase in the quantity of money

A) raises the price level by 3 percent. B) raises the price level by 3 ÷ (velocity). C) raises the price level by less than 3 percent. D) lowers the price level by 3 ÷ (real GDP). E) lowers the price level by 3 percent.

An economic system is

A) the universe of all resources. B) a way to create new resources. C) a mechanism to allocate scarce resources. D) an organization that generates profits.