Using the money demand and money supply model, an increase in money demand would cause the equilibrium interest rate to
A) decrease.
B) increase.
C) not change.
D) increase, then decrease.
Answer: B
You might also like to view...
Assume that Anne has $300 to spend on DVDs and CDs. Her optimal consumption of DVDs and CDs is illustrated by a tangency between a budget line and an indifference curve. Now assume that the price of CDs rises but the price of DVDs falls
How can you show that Anne is made better off by these price changes? A) Show that the price changes move Anne along her budget line to a higher indifference curve. B) Show that Anne can now afford to buy more DVDs, which give her greater utility than CDs. C) Show that the price changes shift Anne's budget line outward; the budget line is tangent to a higher indifference curve. D) Show that Anne can afford to buy the optimal combination of DVDs and CDs at their original prices; then show that Anne can now reach a higher indifference curve.
If prices in the diamond market become less volatile, all else equal, then the demand for diamonds ________ and the demand for gold ________
A) increases; decreases B) increases; increases C) decreases; decreases D) decreases; increases
________ saw the home as a workplace which could be made more efficient. Her husband Frank (an efficiency expert in factories) wrote a book about their marriage and twelve children, Cheaper by the Dozen, which has been made into movies
a. Eleanor Shively b. Evelyn Draper c. Ellen R. Richards d. Lillian Gilbreth
All of the following are true regarding perfectly competitive price determination EXCEPT
A) the market price is determined by the interactions among all buyers (households) and firms. B) the individual firm takes the market price as given. C) the individual firm is known as a market price maker. D) the individual firm's marginal revenue curve is horizontal at the market price.