Suppose the Fed increases the money supply. Which of the following is true?
A) At the original interest rate, the quantity of money demanded is less than the quantity of money supplied.
B) At the original interest rate, the quantity of money demanded is equal to the quantity of money supplied.
C) The interest rate must rise for the money market to clear.
D) At the original interest rate, the quantity of money demanded is greater than the quantity of money supplied.
A
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The largest expenditure component of the federal budget is spending on
A) the military. B) foreign aid. C) environmental protection programs. D) entitlement programs.
If an event is certain to occur, it has a probability (pr) of
A) 0. B) 0 < pr < 1. C) 1. D) Not enough information to determine.
Refer to the information provided in Figure 2.6 below to answer the question(s) that follow.
Figure 2.6Refer to Figure 2.6. A shift from ppf1 to ppf2 may be caused by
A. an increased desire for consumer goods. B. a change in consumer tastes. C. an improvement in technology. D. an increase in inflation.
According to the text, everyone shouts at a party in order to be heard. If instead everyone spoke at a normal volume people would still be heard, but people continue to shout because:
A. shouting can be sustained using a tit-for-tat strategy. B. shouting is a dominated strategy. C. the payoff matrix is unknown to the people at a party. D. shouting is a dominant strategy.