Author Question: Suppose the equilibrium interest rate in the money market is 5 percent and the current interest rate ... (Read 361 times)

tichca · **on:** Jun 29, 2018

Suppose the equilibrium interest rate in the money market is 5 percent and the current interest rate is 7 percent. As a result

A) the interest rate rises.
B) real GDP increases.
C) the demand for money curve shifts rightward.
D) people buy bonds and the interest rate falls.

Question 2

After Hurricane Sandy, FEMA (the Federal Emergency Management Agency) advertised in a New Jersey radio station how people affected by the hurricane could file for assistance.

In the political marketplace, the decision makers in FEMA are best characterized as A) voters.
B) firms.
C) politicians.
D) bureaucrats.