When the quantity of money supplied equals the quantity of money demanded, then
A. the money market is in equilibrium.
B. the goods market is in equilibrium.
C. the money market is not in equilibrium.
D. the asset market is in equilibrium.
Answer: D
You might also like to view...
During an expansion, how do inflation and unemployment typically change?
A) Inflation and unemployment both fall. B) Inflation falls and unemployment rises. C) Inflation and unemployment both rise. D) Inflation rises and unemployment falls.
Under a floating exchange-rate system, everything remaining constant, an increase in European exports to Japan is most likely to result in
A. a decrease in the supply of euro in the foreign exchange market. B. an appreciation of the euro vis-à-vis the Japanese yen. C. an appreciation of the Japanese yen vis-à-vis the euro. D. a decrease in the demand for euro in the foreign exchange market.
Illustrate and explain the effects of tax reduction and simplification using the dynamic aggregate demand and supply model. To simplify the analysis, assume that aggregate demand is not affected by the tax cut
What will be an ideal response?
Change in U.S. policy can lead to changes in inflationary expectations, interest rates, and exchange rates simultaneously as they all adjust to new equilibrium levels
Indicate whether the statement is true or false