If, in the market for money, the quantity of money demanded exceeds the money supply, the interest rate will:
A. fall, causing households and businesses to hold less money.
B. rise, causing households and businesses to hold less money.
C. rise, causing households and businesses to hold more money.
D. fall, causing households and businesses to hold more money.
B. rise, causing households and businesses to hold less money.
You might also like to view...
The idea of convergence is that
a. Poor and rich economies will converge on middle-income status. b. Capitalist and Socialist systems will become more alike. c. Poor countries will grow faster than rich ones, but may level off before becoming rich. d. Agricultural technologies will come to resemble industrial technologies. e. None of the above.
If Capital Appliances advertises a 60 day low-price guarantee that will refund any of its customers the difference between the price they paid for an appliance and a lower price offered by Capital Appliances for the same appliance, this is an example of ________.
A) price visibility B) a most-favored-customer clause C) a meet-or-release clause D) a meet-the-competition clause
A negative slope
A) represents an inverse relationship, such as beers consumed and test score. B) represents a direct relationship, such as snow fall and car accidents. C) indicates that there is no relationship between two variables, such as women's wages and likelihood of sunshine. D) means that the line crosses below the x-axis.
Taxes, subsidies, and monopolies help us achieve allocative efficiency
a. True b. False Indicate whether the statement is true or false