At the current interest rate, suppose the supply of money is less than the demand for money. Given this information, we know that
A) the price of bonds will tend increase.
B) the price of bonds will tend to fall.
C) production equals demand.
D) the goods market is also in equilibrium.
E) the supply of bonds also equals the demand for bonds.
B
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________.
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Refer to the figure above. If the supply curve for flash drives shifts from S1 to S2, with no change in the demand curve, the new competitive equilibrium quantity is:
A) 10 units. B) 20 units. C) 40 units. D) 60 units.
Economists agree that at least in the short run disinflation
a. leads to a period of higher unemployment. They also agree that the costs of even moderate inflation is high. b. leads to a period of higher unemployment. They disagree about the cost of moderate inflation. c. leads to a period of lower unemployment. They also agree that the cost of even moderate inflation is high. d. leads to a period of lower unemployment. They disagree about the cost of moderate inflation.
Suppose the natural rate of unemployment is 6 percent. What is the actual rate of unemployment if actual output is 2 percent below potential output?
A. 4 percent B. 8 percent C. 10 percent D. 7 percent