As the interest rate falls,
a. the quantity of money demanded falls, which would reduce a shortage.
b. the quantity of money demanded falls, which would reduce a surplus.
c. the quantity of money demanded rises, which would reduce a shortage.
d. the quantity of money demanded rises, which would reduce a surplus.
d
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Much of macroeconomics is concerned with advising governments on ways to ________ business cycles, since it is desirable to ________
A) amplify, create the greatest cyclical peaks possible B) amplify, create deep recessions to cool down the economy C) dampen, avoid both very low troughs and very high peaks D) dampen, keep the economy at its maximum productive capacity
The relationship between a pure-strategy Nash equilibrium and a dominant-strategy equilibrium is that
A) a dominant-strategy equilibrium is a special case of a pure-strategy Nash equilibrium. B) a pure-strategy Nash equilibrium is a special case of a dominant-strategy equilibrium. C) they are the same. D) there may not be a dominant-strategy equilibrium, but there always is a pure-strategy Nash equilibrium. E) they are mutually exclusive and exhaustive, in that a dominant-strategy equilibrium is the same thing as a mixed-strategy Nash equilibrium.
Which of the following is one of the concerns over having U.S. auto producers in China?
a. They will dump back onto U.S. markets. b. They will allow technology to leak to Chinese competitors. c. They cannot compete with the Japanese. d. They will allow the Chinese competitors to steal their business model.
By using the ceteris paribus assumption in conjunction with a model, economists can
A) suspend the rationality assumption. B) avoid having their model depend on any additional assumptions. C) hold certain factors constant. D) be sure that the model will predict correctly.