Equilibrium in the money market occurs when
A) the quantity of money demanded is less than the quantity of money supplied.
B) the interest rate equals the money supply.
C) the quantity of money demanded is more than the quantity of money supplied.
D) the quantity of money demanded equals the quantity of money supplied.
D
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Refer to Figure 9.6. Before this policy was implemented, producer surplus was
A) $10. B) $2000. C) $4000. D) $6000. E) $12000.
Suppose many businesses want to increase their stock of capital goods and decide to borrow funds to do it. Which would be the likely result of this event?
A. Interest rates would increase B. Interest rates would decrease C. The equilibrium quantity of loanable funds would decrease D. The equilibrium quantity of loanable funds would remain unchanged