On any given day, ________ changes to achieve equilibrium in the money market
A) the nominal interest rate
B) the price level
C) the real interest rate
D) the inflation rate
E) real GDP
A
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If bond prices decrease, then the
A. transactions demand for money will decrease. B. interest rate increases. C. interest rate decreases. D. transactions demand for money will increase.
One reason why financial intermediaries are beneficial is that
a. they can predict the pattern of the outflow of funds b. they earn a profit c. there are a variety of financial intermediaries d. they reduce the risk to depositors by spreading loans among different borrowers e. they charge high interest rates on funds they lend to depositors
What is a major disadvantage of a centrally planned economy?
(A) Its military forces are too weak to be effective. (B) It offers too many choices for consumers. (C) It cannot meet consumers' needs and wants. (D) It has no control over which goods and services are provided.
In the late 1990s, Thailand, Malaysia, and Indonesia all experienced sharp declines in the value of their currencies; this resulted in economic instability and crisis. The collapse in the values of their currencies undermined their development by:
A. decreasing political instability. B. decreasing population growth. C. increasing corruption. D. reducing investment.