cathy_ant_oine
New member
1- According to the classical dichotomy, which of the following is
largely independent of monetary factors?
A. Savings
B. Nominal GDP
C. Price level
D. Nominal interest rates
2.-As the average price level in the economy falls, people will
A. use less money as a medium of exchange.
B. use more money as a medium of exchange.
C. want to hold more money.
D. use credit cards more often
3-According to the principle of monetary neutrality, a decrease in the money supply will
A. not affect unemployment. C. increase real GDP.
B. decrease real interest rates. D. not affect the price level
4.According to current tax laws, which of the following must be reported as taxable income?
A. Nominal interest earnings C. Real interest rates
B. Real interest earnings D. Inflation
largely independent of monetary factors?
A. Savings
B. Nominal GDP
C. Price level
D. Nominal interest rates
2.-As the average price level in the economy falls, people will
A. use less money as a medium of exchange.
B. use more money as a medium of exchange.
C. want to hold more money.
D. use credit cards more often
3-According to the principle of monetary neutrality, a decrease in the money supply will
A. not affect unemployment. C. increase real GDP.
B. decrease real interest rates. D. not affect the price level
4.According to current tax laws, which of the following must be reported as taxable income?
A. Nominal interest earnings C. Real interest rates
B. Real interest earnings D. Inflation