As opportunity cost of holding money increases, people can A) ...

[Jkov05]

As opportunity cost of holding money increases, people can
 
  A) do nothing.
  B) increase the demand for money but not the quantity of money they hold.
  C) find a better job.
  D) try to maximize marginal benefit.
  E) seek substitutes for money.

Question 2

The line showing potential GDP is a vertical straight line because
 
  A) it represents the minimum level of real GDP in a recession.
  B) when nothing else changes, a higher price level has no effect on real GDP.
  C) the aggregate supply curve is upward sloping.
  D) economists are unsure about how to determine potential GDP.
  E) there is only one level of full employment at any point in time.

[babybsemail]

Answer to Question 1

E

Answer to Question 2

E

[Jkov05]

Excellent

[ghepp]

Gracias!