The interest rate will fall when the
A. quantity of money demanded exceeds the quantity of money supplied.
B. quantity of money supplied exceeds the quantity of money demanded.
C. supply of money decreases.
D. demand for money increases.
Answer: B
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The figure above shows the labor market in a small town. If the government imposes a wage of $10 that firms must at least pay,
A) the government has imposed a minimum wage and market forces are not allowed to work. B) inflation will occur as wages rise. C) job search will decrease. D) the government has imposed an efficiency wage. E) job rationing will decrease.
New smartphone applications are developed to help consumers find the cheapest prices in the neighborhood. Therefore,
A) the local competitive will become more intensive. B) the prices of goods listed in the application will be lowered. C) price discrimination will occur against consumers without a smartphone or this application. D) All of the above.
Some people make purchases without complete information because:
A. they are irrational. B. the opportunity cost of getting more information outweighs the benefit of having more information. C. the benefit of having more information outweighs the opportunity cost of acquiring it. D. No one makes purchases without complete information.
The reforms that were put in place in the Soviet Union after 1985 were called
a. The Lieberman proposals b. The Kosygin reform c. Organizational reform d. Perestroika e. None of the above