As the interest rate falls,
a. the quantity of money demanded falls, which would reduce a shortage.
b. the quantity of money demanded falls, which would reduce a surplus.
c. the quantity of money demanded rises, which would reduce a shortage.
d. the quantity of money demanded rises, which would reduce a surplus.
d
You might also like to view...
A tradable emissions permit program is efficient because the cap protects the environment while: a. generating substantial revenues for the government
b. keeping compliance and administration costs relatively low. c. while requiring the same response by each polluter. d. none of above
When Maxwell Fruit Drinks increases the number of workers it employs from 20 to 25, its total labor costs rise from $10,000 to $15,000 a week. We know then that
a. Maxwell should never have hired the last five workers b. Maxwell should continue hiring workers c. diminishing returns have set in d. the marginal revenue product curve is decreasing e. the marginal labor cost is $1,000