Which of the following is determined in the goods market?
A) the equilibrium interest rate
B) money demand
C) income
D) money supply
Answer: C) income
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Business finance companies
A) purchase accounts receivable of small firms at a discount. B) sell commercial paper and buy long-term corporate bonds. C) take in deposits from savers and buy corporate commercial paper. D) are strictly regulated by state governments.
State and local governments receive the largest portion of their tax revenues from
a. sales taxes and income taxes. b. income taxes and property taxes. c. payroll taxes and income taxes. d. property taxes and sales taxes.
If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries. B. completely ineffective on the exchange rate. C. likely to have a much greater impact on the exchange rate than in developed countries. D. likely to have roughly the same impact on the exchange rate as in developed countries.
An indifference curve
A) must be convex to the origin. B) must be concave to the origin. C) may be convex or concave to the origin. D) depends on the prices of the products and the consumer's income.