This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose the money market has an equilibrium interest rate of 10 percent. If the actual interest is 8 ... (Read 186 times)

tichca

  • Hero Member
  • *****
  • Posts: 554
on: Jun 29, 2018
Suppose the money market has an equilibrium interest rate of 10 percent. If the actual interest is 8 percent, which of the following occurs to bring the money market back to equilibrium?
 
  A) People buy bonds, the price of bonds rises and the interest rate rises.
  B) People buy bonds, the price of bonds falls and the interest rate rises.
  C) People sell bonds, the price of bonds rises and the interest rate rises.
  D) People sell bonds, the price of bonds falls and the interest rate rises.

Question 2

Consider the demand for labor in the computer chip industry. The demand for labor
 
  A) is derived from the demand for computer chips.
  B) is shown by a perfectly elastic demand for labor.
  C) is shown by a perfectly inelastic demand for labor.
  D) has a demand curve that is backward bending.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Jbrasil

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

A


tichca

  • Member
  • Posts: 554
Reply 2 on: Jun 29, 2018
:D TYSM

parshano

  • Member
  • Posts: 333
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

(B) Actual photo of fetus at week 9. (B) Actual photo of fetus at week 9.
How to calculate simple interest (Part 4; P = I/rt) How to calculate simple interest (Part 4; P = I/rt)
Effects of Retrieval Practice on Predicted and Actual Memory Performance Effects of Retrieval Practice on Predicted and Actual Memory Performance
For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ... For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ...
A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ... A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ...
A highway curve of radius 80 m is banked at 45°. Suppose that an ice storm hits, and the ... A highway curve of radius 80 m is banked at 45°. Suppose that an ice storm hits, and the ...
Video: Properties of macromolecules (Explained with No Audio)

For a complete list of videos, visit our video library