If there is an excess demand for money in the economy,

a. there is also an excess supply of money.
b. there is also an excess demand for bonds.
c. there is also an excess supply of bonds.
d. the interest rate will fall.
e. there is also an excess supply of housing.


C

Economics

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Which of the following is TRUE of the portion of the net public debt held by foreign residents?

A) It will definitely be a benefit to current and future generations of U.S residents, because foreign residents have shown a willingness to lend to the U.S. government in exchange for rates of return significantly lower than they can receive elsewhere in the world. B) It will be a benefit to future generations of U.S. residents only if funds that the U.S. government obtains from borrowing are expended on projects with rates of return lower than the rates of interest that the government pays foreign residents C) It will definitely be a burden on current and future generations of U.S. residents who will have to pay interest on this portion of the debt, thereby transferring a portion of future U.S. incomes abroad. D) It will be a burden on future generations of U.S. residents only if funds that the U.S. government obtains from borrowing are expended on projects with rates of return lower than the rates of interest that the government pays foreign residents.

Economics

In order for the first player to move in a sequential game to be able to gain an advantage from making the first move, the player must:

A) possess a dominant strategy that is better than the other player's dominant strategy. B) be able to achieve a higher maximum payoff than the other player. C) follow the same strategy he would pursue in a Nash equilibrium. D) be able to make a credible commitment to the strategy.

Economics

You are the owner of an art supply store, selling both paint and paintbrushes. In order to maximize total sales you should

a. Decrease the price on the paint only b. Decrease the price on paintbrushes only c. Decrease the price on both the paint and the paintbrushes d. Increase the price on both the paint and the paintbrushes

Economics

If a nation is more productive than a trading partner, can it still gain from trade with that partner? Use the concepts of absolute and comparative advantage to explain

What will be an ideal response?

Economics