If at the prevailing interest rate the quantity of money demanded is $2 trillion, and the supply of money is $1.5 trillion, then which of the following istrue?
a. There is a shortage of money, and consequently interest rates must fall in order to achieve an equilibrium in the money market.
b. There is a surplus of money, and consequently interest rates must fall in order to achieve an equilibrium in the money market.
c. There is shortage of money, and consequently interest rates must rise in order to achieve an equilibrium in the money market.
d. There is a surplus of money, and consequently interest rates must rise in order to achieve an equilibrium in the money market.
c
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Because of product differentiation, firms
A) do not have to compete because their products are unique. B) cannot compete on price. C) can compete on the basis of quality. D) are unable to compete by using advertising. E) must compete on only price.
A movie producer has to decide to fund a new movie project. For this project, a success would earn $20 million and a failure would cost $60 million in lost profits. At what probability of expected success should he fund the movie?
a. 0.20 b. 0.25 c. 0.50 d. 0.75
An important antitrust concern about new companies such as Google and Facebook is that they:
A. do not have incentives to innovate. B. use data on their customers to direct ads. C. charge monopoly prices for their services. D. benefit from first-mover advantage.
According to the World View titled "Income Share of the Rich," in which of the following would the top tenth of the population be most likely to receive the highest percentage of the country's income?
A. Namibia. B. Canada. C. South Africa. D. Japan.