According to liquidity preference theory, equilibrium in the money market is achieved by adjustments in
a. the price level.
b. the interest rate.
c. the exchange rate.
d. real wealth.
b
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A firm can produce 840 gallons of paint per day with 6 workers, or 910 gallons per day with 7 workers. The marginal product of labor over this range of output, stated in gallons per worker per day, is
a. 140. b. 135. c. 130. d. 70.
Which of the following provides the economy with currency?
a. Board of Governors b. Federal Reserve Banks c. Federal Open Market Committee d. Treasury Department e. Department of Commerce
The flatter the demand curve that passes through a given point, the more inelastic the demand
a. True b. False Indicate whether the statement is true or false
Explain under what conditions supply is very inelastic and elastic.
What will be an ideal response?