Use the following graph to answer the next question.
The graph shows the supply and demand for money where Dm1, Dm2, and Dm3 represent different demands for money and Sm1, Sm2, and Sm3 represent different levels of the money supply. The initial equilibrium point is A. What will be the new equilibrium point following a decrease in the money supply?
A. F
B. B
C. E
D. I
Answer: B
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Ceteris paribus, as real GDP expected growth ________, investment spending ________
A) increases; decreases B) increases; increases C) decreases; increases D) changes; does not usually change
Land is:
A) an artificially created input whose supply is fixed. B) a naturally occurring input whose supply is fixed. C) an artificially created input whose supply is variable. D) a naturally occurring input whose supply is variable.
Other things the same, an increase in the interest rate
a. would shift the demand for loanable funds to the right. b. would shift the demand for loanable funds to the left. c. would increase the quantity of loanable funds demanded. d. would decrease the quantity of loanable funds demanded.
When near-monopolies like Google in Internet search and Amazon in online shopping start infringing on each other's turf, what kind of competition results?
A. legislated competition B. oligopolistic competition C. pure competition D. monopolistic competition