Equilibrium in the money market exists when
A) at a given interest rate, excess supply of money is equal to the quantity demanded of money.
B) at a given interest rate, excess demand for money is equal to the quantity demanded of money.
C) the supply of money curve intersects the demand for money curve at the prevailing interest rate.
D) b and c
C
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The behavior of the M1 velocity of money in recent years can be explained by: a. stability of interest rates
b. a low and stable rate of inflation. c. monetary policy that has been successful in stabilizing the economy. d. financial innovation creating new substitutes for M1 money. e. a large number of banks and savings and loan associations going bankrupt.
Productive efficiency occurs in perfect competition because the firm produces at the minimum of the: a. average fixed cost curve
b. average variable cost curve c. average total cost curve d. marginal revenue curve.