In the Keynesian model, a Federal Reserve sale of government securities in the open market will
a. raise the level of income and lower the interest rate.
b. raise the level of income and raise the interest rate.
c. lower the level of income and the interest rate.
d. lower the level of income and raise the interest rate.
D
Economics
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When the interest rate on a bond is ________ the equilibrium interest rate, in the bond market there is excess ________ and the interest rate will ________
A) above; demand; rise B) above; demand; fall C) below; supply; fall D) above; supply; rise
Economics
The main reason(s) monopolies can earn positive profits for a while is(are)
a. assets cannot quickly move in and out of the industry when demand fluctuates b. an increase in demand does not lead to entry of firms to absorb the extra demand c. both A&B d. none of the above
Economics