Which among the following assets is the most liquid? a. Real estate b. Deposits that can be withdrawn using ATMs c. Stocks and bonds d. Fine art

The nominal interest rate is 6 percent and the inflation rate is 3 percent. What is the real interest rate?

In the long run, money demand and money supply determine the value of money and the real interest rate. Othe real interest rate but not the value of money. neither the value of money nor the real interest rate. the value of money but not the real interest rate.

An associate professor of physics gets a \( \$ 200 \) a month raise. With her new monthly salary she can buy more goods and services than she could buy last year. Her real and nominal salary have risen. Her real and nominal salary have fallen. Her real salary has risen and her nominal salary has fallen. Hery halary fallen and her nominal salary has risen.

Which of the following helps to explain why the "inflation fallacy" is a fallacy? Nominal incomes tend to rise at the same time that the price level is rising, leaving real income unchanged. Inflation only changes real variables. As the price level rises, the value of a dollar falls. Increases in the price level can be created by increases in money demand.

The velocity of money is the average number of times per year a dollar is spent. the rate at which the Fed puts money into the economy. the same thing as the long-term growth rate of the money supply. the money supply divided by nominal GDP.