Examlex
Use the table below to answer the questions:
(a) If the transactions demand for money equals 10% of nominal GDP, nominal GDP is $800 billion, and the money supply is $480 billion, what is the equilibrium interest rate?
(b) If nominal GDP remains constant, and the money supply is decreased from $480 to $380 billion, what will the equilibrium rate of interest be?
Coterie
An exclusive group or circle of people with a shared interest or purpose, often characterized by a strong sense of unity or loyalty.
Bureaucracy
A large, impersonal organization composed of many clearly defined positions arranged in a hierarchy. A bureaucracy has a permanent, salaried staff of qualified experts and written goals, rules, and procedures. Staff members always try to find ways of running the bureaucracy more efficiently.
Business
Economic activities that involve providing goods or services with the motive of earning profit.
Salaried Staff
Employees who receive a fixed compensation regularly (usually monthly or biannually) regardless of the number of hours worked.
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