Refer to the graph above. If the interest rate rises from 2 percent to 3 percent, the supply of money must have:
Increased by $50 billion
Decreased by $150 billion
Decreased by $100 billion
Decreased by $50 billion
Decreased by $50 billion
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A positive externality or spillover benefit (additional social benefit) occurs when
A. the benefits associated with a product exceed those that accrue for consumers. B. firms earn positive economic profits. C. a firm does not bear all of the costs of producing a good or service. D. product differentiation increases the variety of products available to consumers.
U.S. national debt _______ when the federal government's _______
A. increases; outlays exceed tax revenue B. decreases; outlays exceed tax revenue C. increases; tax revenue rises faster than outlays D. decreases; tax revenue rises faster than outlays
The more elastic the supply of a resource,
a. the greater is economic rent as a proportion of total earnings b. the greater is opportunity cost as a proportion of total earnings c. the fewer alternative uses the resource has d. the greater the derived demand for the resource e. the lower the derived demand for the resource
Almost all economists agree that local and state governments should
a. eliminate subsidies to professional sports franchises. b. increase subsidies to professional sports franchises. c. copy economic policy from Washington, D.C. d. prevent companies from outsourcing work.