If the Fed sells United States government securities on the open market, this will cause
A. an increase in the interest rate which reflects as increase in money supply.
B. interest rates to fall in the loanable funds market.
C. an increase in the money supply.
D. an increase in the interest rate which discourages borrowing for investment.
D. an increase in the interest rate which discourages borrowing for investment.
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In consumer equilibrium, one dollar's worth of additional gasoline will yield the same marginal utility as one dollar's worth of additional cheese
a. True b. False Indicate whether the statement is true or false
During an extended inflationary period, the money rate of interest will usually be
a. lower than the real rate of interest. b. equal to the real rate of interest. c. greater than the real rate of interest. d. inversely related to changes in the inflation rate.
Which of the following is an intermediate product?
A. A road B. Steel C. Bread D. A TV set
Kate has just decided to order a laptop computer that is made in China. She needs to convert U.S. dollars for Chinese yuan. This conversion takes place in the
A. International Monetary Fund. B. foreign exchange markets. C. target zone. D. SDRs.