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Author Question: Suppose that the equilibrium nominal interest rate is 5 percent and the equilibrium quantity of ... (Read 114 times)

B

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on: Jun 29, 2018
Suppose that the equilibrium nominal interest rate is 5 percent and the equilibrium quantity of money is 1 trillion. At any interest rate below 5 percent,
 
  A) the supply of money will decrease.
  B) there will be a surplus of money and bond prices will increase.
  C) the interest rate will fall and bond prices will fall.
  D) there will be a surplus of money and bond prices will fall.
  E) the interest rate will rise and bond prices will fall.

Question 2

Classical growth theory predicts that economic growth
 
  A) is merely an illusion.
  B) will continue at the classical rate of 3 percent forever.
  C) occurs because of hard-working citizens.
  D) decreases the supply of labor.
  E) will eventually stop because of population growth.


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dpost18

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Reply #1 on: Jun 29, 2018
Answer to Question 1

E

Answer to Question 2

E


B

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

dyrone

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Reply 3 on: Yesterday
:D TYSM

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