When the interest rate falls in the money market, the quantity of ...

[bobypop]

When the interest rate falls in the money market, the quantity of money demanded ________ and the quantity of money supplied ________.
 
  A) increases; decreases
  B) decreases; increases
  C) stays the same; decreases
  D) increases; stays the same

Question 2

Which of the following forms of business organization is likely to suffer most from the principal agent problem between the owners and managers of the business?
 
  A) proprietorships
  B) partnerships
  C) corporations
  D) All are equally likely to suffer from the principal-agent problem.

[yasmina]

Answer to Question 1

D

Answer to Question 2

C

[bobypop]

Gracias!

[chjcharjto14]

Thanks for the timely response, appreciate it