When people are holding money in excess of their demand for real money balances ________
A) the nominal interest rate will fall
B) they increase their purchases of goods and services
C) the central bank buys bonds to correct the imbalance
D) all of the above
E) none of the above
A
Economics
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In economics, the term "capital" refers to
A) the money in one's pocket. B) buildings and equipment. C) mineral resources. D) consumer goods.
Economics
Refer to Figure 4-5. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What area represents the deadweight loss after the imposition of the price floor?
A) C + E + J + H B) G + H C) J + H D) C + E
Economics