Refer to the graph which shows the supply and demand for money where Dm1, Dm2, and Dm3 represent different demands for money and Sm1, Sm2, and Sm3 represent different levels of the money supply. The initial equilibrium point is A. What will be the new equilibrium point following a decrease in the transactions demand for money?
A. B
B. E
C. F
D. I
C. F
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If aggregate planned expenditures equal real GDP, then
A) unplanned inventory changes equal zero. B) inventories decrease below their planned levels and businesses increase their production. C) inventories decrease below their planned levels and businesses decrease their production. D) inventories increase above their planned levels and businesses decrease their production. E) there is no equilibrium level of real GDP.
A difference between biology and economics is that
A) economists use models and biologists use theories. B) biologists often use laboratory methods and economists do less often. C) economics explains events while biology predict events. D) biologists use the scientific method while economists do not.
Real GDP is:
a. the base year market value of all final goods and services produced domestically during a given period. b. the current year market value of all final goods and services produced domestically during a given period. c. usually greater than nominal GDP d. the current year market value of domestic production of intermediate goods.
A bank's assets and liabilities are listed on a _____
a. balance sheet b. loan application c. deposit slip d. return statement