An increase in the money supply will lower the equilibrium rate of interest.

Refer to Figure 8.1. This situation represents a

A) pure coordination game. B) prisoner's dilemma game. C) chicken game. D) battle of the sexes game.

The federal funds rate is the interest rate that

(a) the Federal Reserve charges the federal government on its loans (b) banks charge one another for short-term loans (c) banks charge their best customers (d) equalizes the yield on government bonds and corporate bonds (e) is equal to the inflation rate