If there is excess money supply, people will
a. deposit more into interest-bearing accounts, and the interest rate will fall.
b. deposit more into interest-bearing accounts, and the interest rate will rise.
c. withdraw money from interest-bearing accounts, and the interest rate will fall.
d. withdraw money from interest-bearing accounts, and the interest rate will rise.
a
You might also like to view...
Government consumption expenditures equal
A) government outlays minus transfer payments. B) government outlays minus net interest payments. C) government purchases minus government investment. D) the government primary deficit plus net interest payments.
The major flaw of the linear probability model is that
A) the actuals can only be 0 and 1, but the predicted are almost always different from that. B) the regression R2 cannot be used as a measure of fit. C) people do not always make clear-cut decisions. D) the predicted values can lie above 1 and below 0.
The recognition lag refers to the: a. time taken for changes in the money supply to be translated into changes in realGDP
b. time taken by policymakers to formulate an appropriate policy to solve aneconomic problem. c. time taken by policies to have an impact on the different macroeconomic variables. d. time taken by policymakers to recognize that an economic problem exists. e. natural difference between monetary policy timing and fiscal policy timing.
When a firm creates an industry,
A. it is there forever. No other firm can enter. B. the firm's economic profit will stabilize. C. depending on the ease of entry, the firm's economic profit is likely to diminish. D. the firm's economic profit will rise because other firms will enter.