The above diagram has a demand for money curve. Suppose the Fed initially sets the quantity of money equal to $0.6 trillion. Draw the supply of money curve in the figure
What is the equilibrium interest rate? Now suppose the Fed increases the quantity of money to $0.9 trillion. Draw the new supply curve. What is the new equilibrium interest rate?
The initial supply of money curve is MS1 and the equilibrium interest rate is 6 percent. When the Fed increases the quantity of money, the supply of money curve shifts to MS2 and the equilibrium interest rate falls to 4 percent.
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The above table gives real GDP and the aggregate expenditure schedule. When real GDP is $10 billion, the amount of unplanned investment is
A) $0.5 billion. B) -$20.5 billion. C) -$0.5 billion. D) $20.5 billion. E) unknown.
The function of the financial statement, which colleges ask parents to fill out to make their children eligible for tuition scholarships, is to
A) determine cases of genuine need. B) maintain the college's eligibility for federal assistance. C) permit the college to confine its aid to students who can make most effective use of the aid. D) provide information about the demand curves of potential customers.