In the loanable funds framework, the ________ curve of bonds is equivalent to the ________ curve of loanable funds
A) demand; demand
B) demand; supply
C) supply; supply
D) supply; equilibrium
B
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Does monetary policy require the accompaniment of fiscal policy to change total spending?
A) No, because the Fed is an independent agency of the federal government. B) Yes, because monetary policy can contract total spending but cannot by itself expand it. C) Yes, because no policy is effective if it only changes nominal money values. D) Yes, if the demand for money tends to change in about the same direction and amount whenever the supply changes.
The price elasticity of demand for corn is 0.4. A new hybrid of corn is discovered and all farmers start to use it, which increases the quantity of corn they can produce from each acre. What happens to the farmers' total revenue?
A) The total revenue will increase. B) The total revenue will decrease. C) The total revenue will not change. D) There is not enough information to determine what happens to the total revenue.
If you use $1,000 to purchase silver bullion, which you plan to keep in a safe, you are using money as:
A. a store of value. B. a unit of account. C. bank reserves. D. a medium of exchange.
When money is held as an asset, it is serving as a:
A. unit of account. B. standard of value. C. medium of exchange. D. store of wealth.