In the simple liquidity-preference model, the money supply curve is:

A. vertical, and moves when people change their rate of savings.
B. horizontal, and moves at the sole discretion of the Fed.
C. vertical, and moves at the sole discretion of the Fed.
D. horizontal, and moves when people change their rate of savings.


Answer: C

Economics

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Which of the following is a major implication of the invisible hand concept?

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If the cyclically adjusted budget shows a deficit of about $200 billion and the actual budget shows a deficit of about $250 billion over a several-year period, it can be concluded that there is a:

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Answer the following statement true (T) or false (F)

Economics