When the money market is drawn with the value of money on the vertical axis, if the price level is below the equilibrium level, there is an
a. excess demand for money, so the price level will rise.
b. excess demand for money, so the price level will fall.
c. excess supply of money, so the price level will rise.
d. excess supply of money, so the price level will fall.
c
You might also like to view...
Suppose that a monopoly is currently producing the quantity at which marginal revenue is less than marginal cost. The monopoly can increase its profit by ________
A) shutting down B) lowering its price and increasing its output C) raising its price and decreasing its output D) lowering its price and decreasing its output
Which one of the following is a final good or service?
A. Chemical pesticides used by a farmer to control the incidence of crop disease
B. Microcomputer chips for a new computer
C. A radio bought by General Motors for use in its new line of cars
D. A will drawn up by your personal attorney
For the economy as a whole, spending on advertising comprises about what percent of total firm revenue?
a. 0.5 b. 2 c. 10 d. 20
Contrast the economic performance of the American economy of 2001 with the economic performance of the 1996 to 2001 period. Use the appropriate aggregate demand and aggregate supply curves to distinguish the differing economic condition of the two periods.
What will be an ideal response?