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 93 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
Thanks for the timely response, appreciate it

JCABRERA33

  • Member
  • Posts: 344
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

How to calculate simple interest (Part 2) How to calculate simple interest (Part 2)
Stock Market Question Stock Market Question
What is the value of the equilibrium constant, K, at 25°C for the reaction? What is the value of the equilibrium constant, K, at 25°C for the reaction?
A $50 000 bond bearing interest at 6.5% bond payable semi-annually matures in 10 years. If it ... A $50 000 bond bearing interest at 6.5% bond payable semi-annually matures in 10 years. If it ...
Sonja is paid $42.50 per hour as a veterinarian. She is paid 1 times the regular rate for all ... Sonja is paid $42.50 per hour as a veterinarian. She is paid 1 times the regular rate for all ...
The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ... The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ...
Video: Gastroesophageal Reflux Disease (GERD)

For a complete list of videos, visit our video library