Assume a fixed demand for money curve and the Fed increases the money supply. The result is a temporary:

A. excess quantity of money demanded.
B. excess quantity of money supplied.
C. new equilibrium interest rate.
D. decrease in the demand for loans.


Answer: B

Economics

You might also like to view...

The unemployment rate is the number of people unemployed divided by the

A) number of people employed, then multiplied by 100. B) working-age population, then multiplied by 100. C) labor force, then multiplied by 100. D) labor force participation rate, then multiplied by the population. E) population, then multiplied by 100.

Economics

In a liquidity trap, the

A) IS curve is vertical. B) IS curve is horizontal. C) LM curve is vertical. D) LM curve is horizontal.

Economics

Which of the following is the best example of an intermediate good?

a. a tire purchased by an auto company b. a new house purchased by a newly married couple c. grain sold to foreign farmers d. All of the above are intermediate goods.

Economics

Whenever a cartel in a duopoly breaks down, a. both firms obtain higher profits

b. total output in the market will rise. c. price in the market will rise. d. the socially optimal output will be produced.

Economics