The development of instantaneous electronic communication and transaction markets has increased the potential for market arbitrage
Indicate whether the statement is true or false
F
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Everything else remaining unchanged, what is likely to happen to the equilibrium real interest rate and quantity of credit if the credit demand curve shifts to the left?
A) Both equilibrium rate of interest and quantity of credit will decrease. B) Both equilibrium rate of interest and quantity of credit will increase. C) The equilibrium rate of interest will decrease and the quantity of credit will increase. D) The equilibrium rate of interest will increase and the quantity of credit will decrease.
Which of the following is true of the 2008 Troubled Asset Relief Program?
A) It was a contractionary fiscal policy. B) It was a contractionary monetary policy. C) It was a mix of monetary and fiscal policies. D) It mainly aimed at reducing inflation.