Use the following graph to answer the next question.
If the supply of money was $200 billion, the interest rate would be
A. 1%.
B. 2%.
C. 3%.
D. 4%.
Answer: B
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Hong Kong has imports of $1,130 billion and exports of $1,255 billion. Hong Kong definitely has ________
A) negative net exports of $125 billion B) positive net exports of $125 billion C) a government budget surplus D) Both answers B and C are correct.
A natural monopoly that charges the profit-maximizing price will produce ________ amount of output than a ________
A) a larger; natural monopoly regulated with an average cost pricing rule B) a more efficient; perfectly competitive industry C) the same; natural monopoly regulated with a marginal cost pricing rule D) a smaller; natural monopoly regulated with a marginal cost pricing rule
Which of the following bonds would have the highest default risk?
A) municipal bonds B) investment-grade bonds C) U.S. Treasury bonds D) junk bonds
Discounting is a process of turning a stream of future returns into a present dollar equivalent
Indicate whether the statement is true or false