After identifying one combination of interest rates and GDP for which the demand for money is equal to the supply of money (equilibrium), to maintain the equilibrium if GDP rises:
A) this would not affect interest rates.
B) interest rates would have to fall.
C) interest rates would have to rise.
D) interest rates would not be in parity with foreign rates of interest.
Answer: C) interest rates would have to rise.
Economics
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In the above figure, if this natural monopolist were regulated and allowed to earn a "fair" rate of return, it would produce
A) at Q1 output rate. B) at Q2 output rate. C) at Q3 output rate. D) past the Q3 output rate.
Economics
In the above figure, along which range would total revenue remain unchanged by raising prices?
A) between point a and point b B) between point c and point d C) between point d and point e D) below point e and above point a.
Economics