If the quantity of money demanded is greater than the quantity supplied, then in the short run the
A) demand for financial assets increases.
B) price of financial assets rises.
C) nominal interest rate rises.
D) nominal interest rate falls.
E) price level rises.
C
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Eurocurrency activities take place only in Europe
Indicate whether the statement is true or false
Which of the following does NOT explain why developing countries encouraged new manufacturing industries of their own in the mid 20th century?
A) They were cut off from traditional suppliers of manufactures during WWII. B) Former colonial areas had something to prove; they wanted to attain the same income levels as their former rulers. C) Leaders of these countries feared that their efforts to escape poverty would be doomed if they continues to specialize in primary commodity exports. D) There was political pressure to protect these industries. E) Developing countries ran out of the natural resources that traditionally made up the majority of their trade.
Autonomous planned spending is a function of the
A) marginal propensity to consume. B) marginal propensity to save. C) interest rate. D) tax rate.
The purchase of Treasury securities by the Federal Reserve will, in general
A) not change the money supply. B) not change the quantity of reserves held by banks. C) increase the quantity of reserves held by banks. D) decrease the quantity of reserves held by banks.