Starting from equilibrium in the money market, suppose the money supply increases. Other things being equal, this will cause an excess demand for money, leading people to sell bonds
a. True
b. False
Indicate whether the statement is true or false
False
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Answer the following statement(s) true (T) or false (F)
1. In the Circular Flow Model, money flows are disregarded. 2. Within the Circular Flow Model, households are assumed to be the owners of all factors of production, including the natural resources. 3. Residuals are by-products, or pollution, left in the environment after a technological or natural process as occurred. 4. The discipline concerned with the resource flow from economic activity back to nature is known as natural resource economics. 5. According to the first law of thermodynamics, matter and energy can be destroyed but not created.
In the short run, the equilibrium level of real GDP
A) is necessarily less than potential GDP. B) is necessarily equal to potential GDP. C) is necessarily greater than potential GDP. D) could be less than, equal to, or greater than potential GDP.
The growth in income inequality in the United States since the early 1980s has been driven primarily by the dramatic:
A. increase in real incomes for the top 20 percent of earners. B. increase in real incomes for the top 10 percent of earners. C. decrease in real incomes for the bottom 20 percent of earners. D. increase in real incomes for the top 1 percent of earners.
Over the past two decades, the United States has
A. generally had, or been very near to a trade balance. B. had trade deficits in about as many years as it has trade surpluses. C. persistently had a trade deficit. D. persistently had a trade surplus.