The equilibrium interest rate in a money market is determined by:
a. the rate of inflation
b. aggregate demand and aggregate supply.
c. money demand and money supply.
d. the Congress.
e. the Fed.
c
You might also like to view...
Homer and Teddy are stranded on a desert island. To feed themselves each day they can either catch fish or pick fruit. In a day, Teddy could pick 60 pieces of fruit or catch 20 fish. Homer could pick 100 pieces of fruit or catch 150 fish
Which of the following is CORRECT? A) Homer has a comparative advantage in catching fish and Teddy has a comparative advantage in picking fruit. B) Homer has a comparative advantage in picking fruit and Teddy has a comparative advantage in catching fish. C) Homer has a comparative advantage in both catching fish and picking fruit. D) Teddy has a comparative advantage in both catching fish and picking fruit.
In the last few decades, the poverty rate in the US has
A. increased. B. decreased. C. changed little. D. may have increased or decreased, we do not know for certain.
The profit-maximizing rule for a firm in a monopolistically competitive market is to always select the quantity at which
a. marginal revenue is equal to marginal cost. b. average total cost is equal to marginal revenue. c. average total cost is equal to price. d. average revenue exceeds average total cost.
We cannot predict the effect on the equilibrium quantity, but know that the market clearing price will increase when
A) supply decreases and at the same time demand increases. B) supply increases and demand increases simultaneously. C) supply and demand decreases simultaneously. D) supply and demand increases simultaneously.