People react to an excess supply of money by:
a. buying bonds, thus driving down the interest rate.
b. selling bonds, thus driving down the interest rate.
c. selling bonds, thus driving up the interest rate.
d. buying bonds, thus driving up the interest rate.
a
Economics
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Suppose the government increases its expenditures by $100 billion and simultaneously reduces the money supply by $100 billion. We definitely know that
A) equilibrium GDP will fall. B) equilibrium GDP will rise. C) the interest rate will rise. D) the interest rate will fall.
Economics
What is the difference between the accountant's concept of profit and the economist's view of profit?
Economics