The demand for money curve
A) shows the relationship between money demanded and open market operations.
B) shows the relationship between the quantity of money balances demanded and the interest rate.
C) is positively related to the interest rate.
D) varies inversely with the supply of money.
Question 2
All mutually beneficial trades have taken place. This implies that
A) the production possibilities curve is bowed out.
B) society is inside the production possibilities curve.
C) economic efficiency prevails in the society.
D) society is on the constant cost portion of its production possibilities curve.
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