Since 1970, as a Percent of GDP, M1 Held Has

question 59

Multiple Choice

Since 1970, as a percent of GDP, M1 held has steadily decreased.Which of the following can account for this fact?

• A) Real GDP has increased since 1970.
• B) The price level has risen since 1970.
• C) Credit cards have become more widely available since 1970.
• D) The nominal interest rate has steadily risen since 1970.
• E) The nominal interest rate has steadily fallen since 1970.

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Definitions:

Pure Competition

Market structure, in which large numbers of buyers and sellers exchange homogeneous products and no single participant has a significant influence on price.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of a business venture in order to bring new products or services to the market.

Resource Allocations

The process of assigning and distributing available resources, such as time, money, and manpower, among various projects or departments to achieve organizational goals.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell.