Figure 30-3. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes.
Answer: 2 and the equilibrium value of money is 0.5.
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On the New York Stock Exchange, the specialist at a "post" acts as a(n)
A) broker. B) auctioneer. C) dealer. D) underwriter.
To achieve its target when the federal funds rate is above the target range, the Fed could:
A. increase the reserve requirement. B. sell bonds. C. buy bonds. D. increase the discount rate.
Scarcity
A) does not exist in the United States. B) applies only to developing countries. C) can be eliminated with more efficient production methods. D) is not a shortage.
If a positive externality exists in the provision of education when education is provided in a perfectly competitive market without government intervention, at the market equilibrium level of education:
A. the marginal social benefit of education equals the marginal social cost. B. additional net gains to society are possible by raising the level of education. C. additional net gains to society are not possible by either increasing or decreasing the level of education. D. additional net gains to society are possible by reducing the level of education.