A rapid increase in the availability of credit to previously underserved borrowers is likely ________
A) to result from financial liberalization
B) to improve the allocation of capital
C) to confirm the merits of microcredit
D) to result from deleveraging
A
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A market is perfectly competitive even if firms have the ability to set their own price as long as the price difference reflects differences in the product
Indicate whether the statement is true or false
Suppose at the prevailing interest rate of 4 percent the money supply and the quantity of money demanded are both $2 trillion. At a 5 percent interest rate, the quantity of money demanded is $1.5 trillion, while at a 3 percent interest rate it is $2.5 trillion. If the Fed conducts an open-market purchase of $50 billion, and if the money multiplier is 10, then at what interest rate will the money
supply equal the quantity of money demanded? a. An interest rate of 5 percent and a quantity of $1.5 trillion. b. An interest rate of 4 percent and a quantity of $2 trillion. c. An interest rate of 3 percent and a quantity of $2.5 trillion. d. An interest rate of 4 percent and a quantity of $2.5 trillion.