If there is excess demand for money, then people will
a. deposit more money into interest-bearing accounts, and the interest rate will fall.
b. deposit more money into interest-bearing accounts, and the interest rate will rise.
c. withdraw money from interest-bearing accounts, and the interest rate will fall.
d. withdraw money from interest-bearing accounts, and the interest rate will rise.
d
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Long-run elasticity of supply is defined as
a. percentage change in quantity demanded in the long run divided by percentage change in price. b. percentage change in price divided by percentage change in quantity demanded in the long run. c. percentage change in quantity supplied in the long run divided by percentage change in price. d. percentage change in price divided by percentage change in quantity demanded in the long run.
The price of a good will fall when:
a. there is a shortage of the good. b. there is a surplus of the good. c. demand for the good increases. d. the supply of the good decreases.
What are the distinctions made in the text among the terms “hypotheses,” “theories,” “laws,” and “principles”?
Please provide the best answer for the statement.
The recognition lag is generally of equal duration for both fiscal policy and monetary policy.
Answer the following statement true (T) or false (F)