The k-percent rule, an example of a money targeting rule, relies ...

[DyllonKazuo]

The k-percent rule, an example of a money targeting rule, relies on a relatively stable
 
  A) supply of money.
  B) real interest rate.
  C) demand for money.
  D) federal funds rate.
  E) nominal GDP.

Question 2

Refer to Figure 1A.1. Assume that the graph in this figure represents the demand and supply curves for used cars, which are inferior goods. An increase in income would be represented by a shift from
 
  A) Demand 1 to Demand 2.
  B) Demand 2 to Demand 1.
  C) Supply 1 to Supply 2.
  D) Supply 2 to Supply 1.

[hugthug12]

Answer to Question 1

C

Answer to Question 2

B