When money demand decreases, the Fed can choose between:
a. increasing interest rates or increasing the supply of money.
b. increasing interest rates or decreasing the supply of money.
c. decreasing interest rates or increasing the supply of money.
d. decreasing interest rates or decreasing the supply of money.
d
Economics
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Financial intermediaries are important because
A) they bring lenders and borrowers together in a way that lowers transaction costs. B) they employ large numbers of people. C) they provide large funds to the stock market. D) they increase costs for banks.
Economics
Macroeconomics is best described as the study of
A. the nation's economy as a whole. B. the relationship between inflation and wage inequality. C. very large issues. D. the choices made by individual households, firms, and governments.
Economics