Exam 4: Memory, Cognitive Processes, Motivation and Emotion

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If f(k) = 6k0.5, s = 0.1, n = 0.1, and d = 0.2, what is the value of c (consumption) at equilibrium?

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C

In each of the following cases, one factor affecting money demand changes. You must tell how the second factor would have to change if real money demand were to remain unchanged overall. -Liquidity of nonmonetary assets rises; expected inflation ________.

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falls

The worst recessions after World War II occurred

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D

In each of the following cases, one factor affecting money demand changes. You must tell how the second factor would have to change if real money demand were to remain unchanged overall. -Wealth rises; risk on nonmonetary assets ________.

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In each of the following cases, one factor affecting money demand changes. You must tell how the second factor would have to change if real money demand were to remain unchanged overall. -Risk on money rises; real interest rate ________.

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If f(k) = 6k0.5, s = 0.1, n = 0.1, and d = 0.2, what is the value of k at equilibrium?

(Multiple Choice)
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In each of the following cases, one factor affecting money demand changes. You must tell how the second factor would have to change if real money demand were to remain unchanged overall. -Expected inflation rises; real income ________.

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In each of the following cases, one factor affecting money demand changes. You must tell how the second factor would have to change if real money demand were to remain unchanged overall. -Nominal interest rate on money rises; wealth ________.

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In each of the following cases, one factor affecting money demand changes. You must tell how the second factor would have to change if real money demand were to remain unchanged overall. -Risk on stocks and bonds rises; efficiency of payments technology ________.

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