Refer to the graph. If the supply of money was $200 billion, the interest rate would be:
A. 1 percent
B. 2 percent
C. 3 percent
D. 4 percent
B. 2 percent
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Which of the following best describes chattel slavery?
(a) It provided protected property rights to the slaves. (b) It offered property rights to the slave owners. (c) It involved the establishment of a voluntary contract between slave and slave owner. (d) It created wealth for the slave and slave owner.
Very Technical is a firm that sells computing equipment. It costs Very Technical $100 for each order of computer monitors and the variable cost of placing an order is $4 per monitor. Very Technical pays an annual holding cost of $10 per monitor. If Very Technical sells 6,000 computer monitors a year and they order 500 monitors, what is the total annual cost of the monitors?
A) $27,700 B) $21,500 C) $32,800 D) $35,700
Currently, the case for increasing infrastructure spending in the United States is:
A. only compelling during economic downturns. B. not compelling during an economic downturn. C. compelling even when the economy is at full employment. D. only compelling when the economy is at full employment.
You are the chairperson of the Board of Governors of the Federal Reserve. You believe in a Keynesian model of the economy, and your goal is to keep the economy at the full-employment level of output. How would you respond (tightening or easing policy) in each of the following cases?(a)Government purchases increase(b)Corporate tax rates increase(c)Expected inflation increases(d)There's a beneficial oil price shock (and the LM curve shifts more to the right than the FE line)
What will be an ideal response?