Refer to the figure at the right. Suppose point A is the original equilibrium. If there is an increase in the money supply, the new short-run equilibrium is giving by point
A. A.
B. B.
C. C.
D. D
Answer: B
You might also like to view...
If the Fed wants to raise the interest rate, in the short run in the money market the Fed
A) increases the quantity of money. B) shifts the demand for money curve leftward. C) shifts the demand for money curve rightward. D) decreases the quantity of money. E) directly raises the interest rate and does nothing to either the supply of money or the demand for money.
The opportunity cost of housing =
What will be an ideal response?
The marginal revenue product schedule is
A. the firm's resource demand schedule. B. the firm's resource supply schedule. C. the same whether the firm is selling in a purely competitive or imperfectly competitive market. D. upsloping.
When there are sustained increases in real GDP over time, we say that the economy is undergoing
A) a recession. B) economic growth. C) massive changes in productive capacity. D) economic stagnation.