Using the money demand and money supply model, an open market sale of Treasury securities by the Federal Reserve would cause the equilibrium interest rate to
A) not change. B) increase, then decrease.
C) increase. D) decrease.
C
You might also like to view...
"When the price level increases, aggregate planned expenditure increases and equilibrium expenditure increases." Is the preceding statement correct or incorrect? Briefly explain your answer
What will be an ideal response?
A 1995 evaluation concluded that programs that emphasized labor force attachment (work experience) were much more successful than programs that emphasized human capital development
Indicate whether the statement is true or false
When shopping online, as part of the check-out process, companies often have a box checked automatically that states you want to receive promotional e-mails from them. The directions instruct you to uncheck the box if you do not wish such correspondence. This practice is a good example of:
A. status-quo bias. B. endowment bias. C. endowment effect. D. time inconsistency.
The accompanying graph depicts demand.
At point D, demand is:
A. price elastic. B. perfectly price elastic. C. price inelastic. D. unit elastic.