The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 3 percent. The effect of this interest rate in the money market is that
A) the money market is in equilibrium.
B) people buy bonds and the interest rate falls.
C) people sell bonds and the interest rate rises.
D) bond prices rise so that the interest rate rises.
C
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A student who just graduated from college during an economic expansion but has yet to find a job would most likely be
A) structurally unemployed. B) frictionally unemployed. C) cyclically unemployed. D) seasonally unemployed.
The study of the decisions of individual units in the economy is known as
A) macroeconomics. B) microeconomics. C) the study of incentives. D) ceteris paribus study.
If a monopolist lowers its price
A) it lowers the barriers to entry. B) the quantity demanded increases. C) the quantity demanded remains the same. D) the quantity demanded decreases.
In the above figure, assume d3 is the demand curve faced by this firm. Which is TRUE?
A) This firm is earning an economic profit. B) This firm is experiencing an economic loss. C) This firm is breaking even. D) This firm's total revenues equal HRD0.