If, in the market for money, the quantity of money demanded exceeds the money supply, the interest rate will
A. fall, causing households and businesses to hold more money.
B. rise, causing households and businesses to hold more money.
C. fall, causing households and businesses to hold less money.
D. rise, causing households and businesses to hold less money.
Answer: D
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Suppose the price of crude oil drops from $150 a barrel to $120 a barrel. The quantity bought remains unchanged at 100 barrels. The coefficient of price elasticity of demand in this example would be
A) -0.5. B) infinity. C) -1.0. D) 0.
If governments operated like businesses, meaning their goal was to maximize profits, why would they likely never give up the power to print money to any other institution?
What will be an ideal response?
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.
If at a price of $24, Octavia sells 36 home-grown orchids and at $30 she sells 24 home-grown orchids, the demand for her orchids is
A) inelastic. B) unit elastic. C) perfectly elastic. D) elastic.