If in the market for money the money supply exceeds the quantity of money households and businesses want to hold, we would expect the interest rate to:
What will be an ideal response?
fall, causing households and businesses to hold more money
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Suppose output is $1000 billion, government purchases are $200 billion, desired consumption is $700 billion, and desired investment is $150 billion. Net foreign lending would be equal to
A) -$150 billion. B) -$50 billion. C) $50 billion. D) $150 billion.
You have a bond that you can redeem for $10,000 one year from now. The interest rate is 3 percent (0.03) per year. How much is the bond worth today?
a. $9,090.91 b. $10,000.00 c. $8,264.46 d. $9,708.74 e. $9,000.00
An open market purchase of bonds by the Fed
a. drains reserves from the banking system and decreases the money supply b. injects reserves into the banking system and increases money demand c. injects reserves into the banking system and increases the money supply d. drains reserves from the banking system and increases the money supply e. injects reserves into the banking system and decreases the money supply
In 2008 ___________ had the highest annual expenditures on public and private schools per student.
A. Spain B. France C. United States D. Japan