Assume a fixed demand for money curve and the Fed increases the money supply. The result is a temporary:
A. excess quantity of money demanded.
B. excess quantity of money supplied.
C. new equilibrium interest rate.
D. decrease in the demand for loans.
Answer: B
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During the antebellum period, the U.S. used more economic output and resources than were domestically available during expansions and less during contractions. International trade assisted during these cyclical times
Indicate whether the statement is true or false
In a first-price sealed-bid auction, the winner pays
A) its own, highest bid. B) the amount bid by the runner-up. C) the average of the three highest bids. D) the common value.
The exchange rate last month was $1= 3.2 Swiss francs. This month it is $1 = 3.12 Swiss francs. We can say that the value of the dollar
A) fell, causing net exports to increase and aggregate demand to rise. B) fell, causing net exports to decrease and aggregate demand to fall. C) increased, causing net exports to decrease and aggregate demand to fall. D) increased, causing net exports to decrease and aggregate demand to rise.
Elasticity of demand is closely related to the slope of the demand curve. The less responsive buyers are to a change in price, the
a. steeper the demand curve will be. b. flatter the demand curve will be. c. further to the right the demand curve will sit. d. closer to the vertical axis the demand curve will sit.