If, at some interest rate, the quantity of money demanded is less than the quantity of money supplied, people will desire to
a. sell interest-bearing assets, causing the interest rate to decrease.
b. sell interest-bearing assets, causing the interest rate to increase.
c. buy interest-bearing assets, causing the interest rate to decrease.
d. buy interest-bearing assets, causing the interest rate to increase.
c
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Which statement is true?
A. On the production possibilities frontier, 85 percent of capital is employed. B. If we moved closer to the origin and further away from the production possibilities frontier, unemployment would increase. C. To have economic growth, we must push the production possibilities frontier outward. D. All of the statements are true.
Answer the following statement(s) true (T) or false (F)
1. The Robinson-Patman Act was designed to stop resale price maintenance. 2. It is possible for a firm engaging in predatory pricing to make a profit on the good even thought the price is set artificially low. 3. It is possible to avoid the prisoners' dilemma as long as the interaction is repeated and has a definite ending date. 4. Fair trade refers to the fact that retailers are free to set their price in the absence of resale price maintenance. 5. An attorney that finds a loophole in a law has formed a creative response to the law.
Which of the following is not true about the composition of GDP in 2014?
A) Imports are greater than exports. B) Business fixed investment is the largest component of investment. C) Purchases made by state and local governments are greater than purchases made by the federal government. D) The majority of consumer spending is on durable goods.
Prices for airline tickets change on average about once per month. This would suggest that airline ticket prices are:
A. stuck. B. determined in a highly competitive market. C. relatively sticky. D. relatively flexible.