If the quantity supplied of money is less than the quantity demanded of money, people will ________ bonds which will cause bond prices to ________ and the nominal interest rate to ________ until the quantity demanded and quantity supplied of money are equal.
A. buy; fall; rise
B. sell; fall; rise
C. sell; rise; fall
D. sell; fall; fall
Answer: B
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A perfectly competitive firm will be willing to produce even at a loss in the short run, as long as
A. the loss is smaller than its total variable costs. B. the loss is smaller than its marginal costs. C. price exceeds marginal costs. D. the loss is smaller than its total fixed costs.
A tax is regressive if it
A. is levied on consumers. B. takes a smaller percentage of income as income increases. C. takes a higher percentage of income as income increases. D. takes the same percentage of income regardless of income level.
The GDP of a country can be derived by summing
a. the expenditures on final user goods and services produced domestically during the year. b. the payments to employees and owners of capital resources and then subtracting depreciation and indirect business taxes. c. the market value of all goods and services produced domestically during the period and then subtracting net exports from that figure. d. the income payments to the resource suppliers and net exports.
Human capital refers to the accumulated skills and training that workers possess
Indicate whether the statement is true or false