Which of the following is not a lagging indicator?
a. Duration of unemployment.
b. Stock prices.
c. Outstanding commercial and industrial loans.
d. Prime rate.
QUESTION 2The real balances effect is caused by an inverse relationship between the price level and the real value of financial assets with fixed nominal value.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3Other things being equal, an increase in the rate of interest causes a(n):
a. upward movement along the demand for money curve.
b. downward movement along the demand for money curve.
c. rightward shift of the demand for money curve.
d. leftward shift of the demand for money curve.
QUESTION 4Which of the following is a lagging indicator?
a. Outstanding commercial loans.
b. Duration of unemployment.
c. Prime rate.
d. All of these.
QUESTION 5The aggregate demand curve slopes downward because of the real balances, interest-rate, and net exports effects.
a. True
b. False
Indicate whether the statement is true or false