Refer to the graph above. If the initial equilibrium interest rate was 5 percent and the money supply increased by $100 billion, then the new interest rate would be:
1 percent
2 percent
3 percent
4 percent
3 percent
You might also like to view...
If an international currency speculator expects that country A will soon be forced to devalue its currency, the speculator will
A) buy as much of that currency as possible. B) sell all of his holdings of that currency. C) not be concerned because the devaluation will affect only the domestic prices of goods within country A's borders, not international prices. D) not be concerned because only a revaluation will affect his or her profits.
If both demand and supply change, the two equilibrium values would change depending on the relative ______ of the changes in supply and demand.
a. consequences b. magnitude c. timing d. accuracy
GDP does not count:
A. the estimated value of homemaker production. B. state and local government purchases. C. spending for new homes. D. changes in inventories.
The graph illustrates the market for British pounds, the currency of the United Kingdom. As the number of buyers of pounds increases and the number of sellers of pounds increases, the equilibrium price of a pound Question 19 options:
A. will remain the same. B. will rise. C. will fall. B. might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers. D. None of the above answers is correct.