The money market is distinguished from the capital market, because
a. The money market is where foreign exchange is traded, and the capital market is where long-term and short-term funds are borrowed and lent.
b. The money market is where foreign exchange is traded, and the capital market is where long-term funds (i.e., maturities more than one year) are borrowed and lent.
c. The money market is where foreign exchange is traded, and the capital market is where short-term funds (i.e., maturities equal to or less than one year) are borrowed and lent.
d. The money market is where short-term funds (i.e., maturities equal to or less than one year) are borrowed and lent, and the capital market is where long-term funds (i.e., maturities greater than one year) are borrowed and lent.
e. None of the above.
.D
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Why might a producer practice price discrimination?
A) to maximize profits B) to maximize quantity demanded C) to make its products more affordable to those with low incomes D) to maximize economic efficiency
An decrease in taxes combined with a decrease in government purchases would: a. increase AD
b. decrease AD. c. leave AD unchanged. d. have an indeterminate effect on AD.
Why is does the minimum job proposal pay a maximum of $9 an hour? Group of answer choices
A. To compete with the Federal minimum wage of $7.25 per hour. B. To provide an attractive alternative to dangerous jobs. C. Those who do not participate at this wage don't really want a job. D. Those who do not participate are owed higher wages.
Desired consumption is Cd = 2000 + 0.9Y - 100,000r - G, and desired investment is Id = 1000 - 45,000r. Real money demand is Md/P = Y - 6000i. Other variables are ?e = 0.03, G = 500, = 1000, and M = 2100.(a)Find the equilibrium values of the real interest rate, consumption, investment, and the price level.(b)Suppose government purchases decline to 400. What happens to the variables listed in part (a)? (c)Suppose government purchases rise to 600. What happens to the variables listed in part (a)? (d)What feature in this example leads to the result that you don't need to know the amount of taxes collected by the government to find the equilibrium?
What will be an ideal response?