Suppose that the interest rate is greater than the equilibrium interest rate. Which of the following occurs?
I. There is an excess quantity of money.
II. The quantity of money automatically increases.
III. The interest rate falls.
A) I
B) I and II
C) I and III
D) I, II and III
C
Economics
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An appreciation of the U.S. real exchange rate induces U.S. consumers to buy
a. fewer domestic goods and fewer foreign goods. b. more domestic goods and fewer foreign goods. c. fewer domestic goods and more foreign goods. d. more domestic goods and more foreign goods.
Economics
When the government finances a shovel-ready project through taxes or borrowing, this will result in
What will be an ideal response?
Economics