In the above figure, if the interest rate is 2 percent per year, the quantity of money demanded is
A) greater than the quantity of money supplied, and the interest rate will change.
B) greater than the quantity of money supplied, and the demand for money curve will shift.
C) greater than the quantity of money supplied, and the supply of money curve will shift.
D) less than the quantity of money supplied, and the interest rate will change.
E) less than the quantity of money supplied, and the demand for money curve will shift.
A
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Use the above table. When real disposable income is $125
A) APC = 0.80. B) MPS = 0.96. C) APS = 0.20. D) APC = 0.96.
Refer to Scenario 14.1. Marco and Lisette decide to help each other out and agree to split any medical bills from their doctor. With this new arrangement, Lisette's dominant strategy will give her a net benefit of
A) $45. B) $75. C) $120. D) $150.
Hyperinflation occurs when
A) the inflation rate rises. B) the inflation rate declines. C) the inflation rate is extremely high. D) the inflation rate is extremely low.
Which of the following best characterizes the intersection of Y* and AE*?
a. the point toward which the economy moves
b. the point away from which the economy moves
c. the hypothetical but unattainable point of equilibrium
d. the point at which, once reached, the economy remains unchanged