In the money market, a condition of excess demand for money can be eliminated by a ________ in aggregate output or a ________ in the interest rate, everything else held constant
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
C
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A consumer's willingness to trade one good for another can be expressed by the consumer's
A) indifference curve. B) marginal rate of substitution. C) Both A and B above. D) None of the above.
According to the graph shown, if the supply increases, then
A. consumer surplus would increase.
B. consumer surplus would decrease.
C. total surplus would increase.
D. quantity would increase.
Money must be relatively "scarce" if it is to have value. True or False?
Indicate whether the statement is true or false.
If banks pay back their borrowings from the central bank:
a. The monetary base will decrease. b. Excess reserves will rise. c. The M2 multiplier will fall. d. The monetary base will rise.