Which of the following is/are considered currency? A. paper notes. B. gold C. both coins and paper notes. D. coins.
According to the quantity equation, if M increases by 3 per cent and increases by 2 per cent, then: A. nominal income increases by approximately 5 per cent. B. real income increases by approximately 5 per cent. C. the nominal interest rate increases by approximately 5 per cent. D. the price level increases by approximately 5 per cent.
In the short run, if prices are fixed, the aggregate supply curve is: A. downward sloping. B. upward sloping. C. horizontal.D. vertical. If the capital stock is above the steady-state level, then investment: A. could be higher than, lower than, or equal to depreciation. B. is equal to depreciation. C. is smaller than depreciation. D. is larger than depreciation. At the point where the IS curve and the LM curve intersect, the: A. the money and the goods market are in equilibrium. B. the goods market is in equilibrium. C. the labor market is in equilibrium. D. the money market is in equilibrium.