When there is an excess supply of money,
a. people will try to get rid of money causing interest rates to rise. Investment increases.
b. people will try to get rid of money causing interest rates to fall. Investment decreases.
c. people will try to get rid of money causing interest rates to fall. Investment increases.
d. people will try to get rid of money causing interest rates to rise. Investment decreases.
c
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Lily is a college student who likes to buy only two goods: Cheetos and Pepsi. To determine Lily's budget line, you need to know I. Lily's preferences for Cheetos and Pepsi. II. The prices of Cheetos and Pepsi. III. Lily's income
A) II only B) I and II C) II and III D) I, II and III
If a bank buys securities, its
A) net worth increases. B) net worth decreases. C) reserves increase. D) reserves decrease.
Do government bureaucracies misallocate resources? If so, how and why? Can you list one possible way to limit the negative effects of special interests such as bureaucracies?
What will be an ideal response?
Taxes for the most part are efficient because they retain incentives and align the values that buyers and sellers place on goods and services
a. True b. False Indicate whether the statement is true or false