If the equilibrium rate of interest would be 10 percent, but the usury law sets 8 percent,
A. the quantity of funds supplied would be greater than the quantity demanded.
B. economic efficiency would be promoted.
C. some applicants for loans would likely be turned down.
D. lenders would be able to fund fully all requests for loans.
Answer: C
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___________ is the payoff/earnings from a particular gamble.
Fill in the blank(s) with the appropriate word(s).
When the Fed buys a $10,000 bond from a bond dealer
A) reserves of the banking system remain unchanged, but the money supply increases by $10,000. B) reserves of the banking system increase by $10,000, but the money supply will only be able to increase by something less than this amount. C) reserves of the banking system increase by $10,000, but the money supply can increase by more than $10,000. D) reserves of the banking system remain unchanged, but the money supply decreases by $10,000.