Assuming that there is an excess supply of money in the classical model, then
a. a matching excess demand for commodities will lower the aggregate price level.
b. a corresponding excess demand for commodities will drive the aggregate price level up.
c. an equal excess demand for commodities will not affect the price level.
d. None of the above
B
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Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of
A) microeconomics. B) social interest versus self-interest. C) macroeconomics. D) why to produce. E) scarcity.
The third round of quantitative easing, announced in September 2012, was focused on purchases of:
A) short-term Treasury bills B) long-term Treasury notes C) long-term Treasury notes and sales of short-term Treasury bills D) mortgage-backed securities