Author Question: In the above figure, if there is a negative relationship between the variables x and y, which of the ... (Read 87 times)

B · **on:** Jun 29, 2018

In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?

A) Figure A
B) Figure B
C) Figure C
D) both Figure A and Figure C

Question 2

In the money market, if the interest rate exceeds the equilibrium interest, there is a surplus of money. How is the surplus eliminated?

A) People buy bonds to rid themselves of the surplus money, bidding up their price and pushing interest rates down.
B) Banks will lend out the surplus, lowering interest rates.
C) The Federal Reserve will destroy currency, reducing the quantity of money.
D) The high interest rate increases the demand for money, eliminating the surplus.