The liquidity effect is the
A) decrease in the interest rate due to an increase in the supply of loanable funds.
B) increase in the interest rate due to an increase in national income.
C) increase in the interest rate due to a higher expected inflation rate.
D) increase in the interest rate due to an increase in the price level.
A
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If the marginal propensity to save is 0.1, then a $10 million decrease in disposable income will
A) increase consumption by $9 million. B) decrease consumption by $1 million. C) increase consumption by $1 million. D) decrease consumption by $9 million.
According to the graph shown, consumer surplus is:
A. $10.
B. $15.
C. $20.
D. $30
The lower the barriers to entry and exit, the more nearly a market structure fits the ____ market model
a. monopolistic competition b. perfectly contestable c. oligopoly d. monopoly e. none of the above
Which of the following forms of money is the least liquid?
a. Dollars. b. Checking account deposits. c. Passbook savings. d. Certificates of deposit.