Assuming a decrease in money demand, then to keep interest rates constant the Fed must
a. keep the money supply constant.
b. conduct an open market sale of bonds.
c. accommodate the decreased demand for money by the public by increasing the money supply.
d. All of the above
e. None of the above
B
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What is meant by the term economic growth?
What will be an ideal response?
In a single-price monopoly market
a. total benefit (the sum of consumer and producer surplus) is as large as it can possibly be b. price and output are higher than they would be in an otherwise similar perfectly competitive market c. price and output are lower than they would be in an otherwise similar perfectly competitive market d. the quantity produced is artificially low, thereby creating an inefficiency e. the price charged is artificially low, thereby creating an inefficiency