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 135 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
Excellent

juliaf

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

« previous next »
 

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Independent assortment produces 50 percent recombinants Independent assortment produces 50 percent recombinants
Kinesthesis and Equilibrium with skating Kinesthesis and Equilibrium with skating
Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ... Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ...
Outgroup role in relative rate test Outgroup role in relative rate test
The rate of replacement of a recessive allele d by the dominant allele D by mutation alone. Even tho The rate of replacement of a recessive allele d by the dominant allele D by mutation alone. Even tho
The Hardy–Weinberg Equilibrium The Hardy–Weinberg Equilibrium
Video: Bulk flow - Factors that influence bulk flow

For a complete list of videos, visit our video library