From 2007 to 2008, the Federal Reserve System reduced interest rates, the price which borrowers pay. As a result, economists expected the quantity of money demanded to
a. increase.
b. decrease.
c. not change.
d. not change, although the demand schedule itself will shift outward.
a
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Refer to Cournot Problem. The market price for this good will be
a. $10 b. $40 c. $55 d. $70
The terms "saving" and "savings" differ in that
A) saving is a stock, and savings are a flow. B) saving always exceeds savings. C) savings are a stock, and saving is a flow. D) savings can be negative, but saving cannot.
A tax on an imported good is called a ______
Fill in the blank(s) with correct word
A possible reason a nation might impose a protectionist policy such as a tariff is to:
A. increase the level of imports. B. protect an infant industry from foreign competitors. C. encourage specialization in the good in which the nation has a comparative advantage. D. slow domestic production.