Refer to the table. Suppose that the transactions demand for money is $300 billion and the money supply is $700 billion. A decrease in the money supply to $600 billion would cause the interest rate to:





A. Rise to 7 percent



B. Rise to 6 percent



C. Fall to 4 percent



D. Fall to 5 percent


B. Rise to 6 percent

Economics

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? Assume that Figure 4-4 shows demand for soda. An increase in the price of bottled water will change demand from

A. D1to D2. B. D2to D1. C. D3to D2. D. D3to D1.

Economics

Sale of a popular energy drink called 7D was banned in Bonland after a study revealed that one of its ingredients increases the risk of cancer. This legislation is an example of ________

A) paternalism B) consumer sovereignty C) indirect regulation D) internalization of externalities

Economics

Revenue remains unchanged along a straight-line demand curve.

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

Economics

Suppose a person receives an education in her home country. Which of the following will tend to make the increase in GDP of the person's home country larger than the increase in this person's income?

a. externalities and brain drain b. externalities but not brain drain c. brain drain but not externalities d. neither externalities nor brain drain

Economics