Suppose in the money market the equilibrium nominal interest rate is 5 percent. If the Fed increases the quantity of money, what is the effect on the nominal interest rate?
What will be an ideal response?
If the Fed increases the quantity of money, the supply of money curve shifts rightward and the nominal interest rate falls.
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The above table gives the demand schedule and the supply schedule for housing in Anytown, U.S.A. If a rent ceiling of $600 was imposed in the housing market, then
A) there would be a surplus of apartments. B) there would be a shortage of apartments. C) the market would reach equilibrium at the quantity of 60 housing units. D) the supply of housing would increase.
A goldsmith with 100 gold coins in his safe and 200 goldsmith's receipts in circulation has a reserve ratio of _____%.
Fill in the blank(s) with the appropriate word(s).
If every person is willing to accept money in payment, rather than goods and services, money serves as a:
A. medium of exchange. B. unit of account. C. store of value. D. coincident exchange.
The recession of 2007-2009 would most likely be represented in a production possibilities frontier graph by
A) a point inside the frontier. B) a point outside the frontier. C) a point on the frontier. D) an intercept on either the vertical or the horizontal axis.