Author Question: Based on the model of the money market, if prices in the economy decrease, the equilibrium interest ... (Read 15 times)

dakota nelson

  • Hero Member
  • *****
  • Posts: 604
Based on the model of the money market, if prices in the economy decrease, the equilibrium interest rate should
 
  A) stay the same.
  B) increase.
  C) decrease.
  D) increase to the same extent that the supply of money increases.

Question 2

A change in the price of a good ________ its supply curve and ________ a movement along its supply curve.
 
  A) does not shift; causes
  B) shifts; does not cause
  C) does not shift; does not cause
  D) shifts; causes
  E) None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the size of the change.



Madisongo23

  • Sr. Member
  • ****
  • Posts: 325
Answer to Question 1

C

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

For a complete list of videos, visit our video library