If the nominal interest rate is below the equilibrium value, then the quantity demanded of money is ________ than the quantity supplied of money, bond prices will ________, and the nominal interest rate will ________.
A. less; fall; increase
B. greater; fall; increase
C. greater; rise; increase
D. greater; fall; decrease
Answer: B
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Alchemy was the attempt to discover a process by which base metals, such as lead, could be turned into gold. If an alchemist had been successful,
A) all the lead in the world would have been added to the world's gold supply. B) all the lead in the world would have replaced the world's gold supply. C) all the lead in the world would only have been added to the world's gold supply when it was converted to gold. D) the alchemist would likely have been killed by the owners of real gold.
Which of the following sequences results from a decrease in the price level?
a. the money demand curve shifts leftward, the interest rate decreases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts upward, and there is a rightward movement along the aggregate demand curve. b. the money demand curve shifts rightward, the interest rate increases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts downward, and there is a rightward movement along the aggregate demand curve. c. the money demand curve shifts leftward, the interest rate decreases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts upward, and there is a leftward movement along the aggregate demand curve. d. the money demand curve shifts rightward, the interest rate decreases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts upward, and there is a movement upward along the aggregate demand curve. e. the money demand curve shifts leftward, the interest rate increases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts upward, and there is a leftward movement along the aggregate demand curve.
When firms form a cartel in an oligopoly market, the total output is always the same as if the market were perfectly competitive
a. True b. False Indicate whether the statement is true or false
Rising savings rates in emerging countries in the period 2000-2008 are associated with both falling and rising mortgage interest rates in the United States
Indicate whether the statement is true or false