If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, the interest rate will:
A. fall, causing households and businesses to hold less money.
B. rise, causing households and businesses to hold less money.
C. rise, causing households and businesses to hold more money.
D. fall, causing households and businesses to hold more money.
D. fall, causing households and businesses to hold more money.
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The expansion of 2002 and beyond was due, at least in part to
a. interest rate increases. b. increases in housing wealth. c. increases in investment spending. d. large reductions in federal spending. e. increases in taxes.
Refer to the above figure. If real Gross Domestic Product (GDP) is $2 trillion, then
A. the level of total planned expenditures is greater than real GDP. B. the level of total planned expenditures is less than real GDP. C. the level of total planned expenditures equals real GDP. D. the level of total planned expenditures equals zero.
The average tariff on imports into the United States is less than 5 percent.
Answer the following statement true (T) or false (F)
A decrease in saving that leads to an increase in the interest rate will:
A. Decrease the amount of investment spending B. Only result in a surplus of loanable funds C. Shift the demand for loanable funds to the right, increasing net investment D. Shift the demand for loanable funds to the left, causing a decrease in investment