Suppose in the money market the equilibrium nominal interest rate is 5 percent. If the Fed increases the quantity of money, what is the effect on the nominal interest rate?
What will be an ideal response?
If the Fed increases the quantity of money, the supply of money curve shifts rightward and the nominal interest rate falls.
Economics
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In the figure above, when the market is in equilibrium, total consumer surplus on all the CDs bought will be
A) greater than $30 million. B) less than at any other price. C) $20 million. D) less than $15 million.
Economics
Industrial machinery is an example of
a. a factor of production that in the past was an output from the production process. b. technological knowledge. c. a production function. d. an item which always has the property called constant returns to scale.
Economics