Economic variables whose values are measured in goods are called A. dichotomous

Question

Economic variables whose values are measured in goods are called A. dichotomous variables. B. real variables. C. nominal variables. D. classical variables. 30. According to the classical dichotomy, which of the following is influenced by monetary factors? A. the real wage. B. the real interest rate. C. the nominal interest rate. D. All of the above are correct. 31. If monetary neutrality holds, then an increase in the money supply A. increases nominal but not real variables. Most economists think that monetary neutrality is a good description of the long run. B. increases nominal but not real variables. Most economists think that monetary neutrality is a good description of the short run. C. increases real but not nominal variables. Most economists think that monetary neutrality is a good description of the short run. D. increases real but not nominal variables. Most economist, think that monetary neutrality is a good description of the long run. 32. If M = 3,000, P = 2, and Y = 6,000, what is velocity? A. 2 B. 4 C. 1/4 D. 1 33. The nominal interest rate is 3.5 percent and the inflation rate is 1.5 percent. What is the real interest rate? A. 2.3 percent B. 2 percent C. 5.25 percent D. 5 percent 34. A relatively mild period of falling incomes and rising unemployment is called a(n) A. business cycle. B. expansion.

Explanation / Answer

Q29)

Answer

B- real variables

real variable: Economic variable expressed in constant or physical monetary units

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