Suppose that households became mistrustful of the banking system and decide to decrease their checking account balances and increase their holdings of currency
Using the money demand and money supply model and assuming everything else is held constant, the equilibrium interest rate should
A) decrease. B) increase.
C) not change. D) increase, then decrease.
B
Economics
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Refer to Figure 4-1. What is the total amount that Arnold is willing to pay for 2 burritos?
A) $2.00 B) $4.50 C) $7.50 D) $10.00
Economics
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. lower; higher C. higher; potential D. higher; higher
Economics