1. People who enjoy high standards of living usually have all of the following EXCEPT:
- higher literacy rates
- better general health.
- freedom from scarcity.
- longer life expectancies.
- more and better consumer goods.
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Other questions in this quiz
2. Deflating a nominal quantity is the process of dividing a ____ quantity by a ______ in order to express the quantity in ______ terms.
- nominal; nominal quantity; real
- nominal; price index; real
- real; nominal quantity; real
- nominal; real quantity; nominal
- real; price index; nominal
3. The nominal interest rate equals the
- inflation rate times the real interest rate.
- real interest rate plus the inflation rate.
- inflation rate minus the real interest rate.
- real interest rate minus the inflation rate
- real interest rate divided by the inflation rate.
4. The money demand curve will shift to the left if
- the price level decreases.
- price level increases
- the nominal interest rate decreases.
- the nominal interest rate increases
- real income increases.
5. In the equation Md = kY - hi, where Md is money demand, the parameter k captures _____
- the transactions demand for money
- the effects of inflation
- the total demand for money
- the money supply
- the speculative demand for money