If the Fed increases the money supply, then:
a. the interest rate declines and the quantity of money demanded increases
b. the interest rate declines and the quantity of money demanded declines.
c. the interest rate increases and the quantity of money demanded increases.
d. the interest rate increases and the quantity of money demanded declines.
e. the interest rate increases but the quantity of money demanded remains unaffected.
a
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Historically, the key role in assisting countries that ran into financial difficulties was played by
A) Europe. B) Japan. C) the IMF. D) the United Nations.
You invest an amount today for four years that pays 6% annually. The bank compounds annually. At the end of the four years you will have $150. What amount must you invest today?
A) $148.81 B) $138.81 C) $128.81 D) $118.81
When a society takes increasing amounts of resources and applies them to the production of a specific good, resulting in increasing opportunity costs for each additional unit produced, which of the following applies?
A) the law of demand B) the law of supply C) the law of scarcity D) the law of increasing additional costs
"Unit elasticity of demand can be found everywhere along a straight-line demand curve with a slope of -1." Do you agree or disagree? Explain
What will be an ideal response?