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Author Question: Suppose the money market has an equilibrium interest rate of 10 percent. If the actual interest is 8 ... (Read 227 times)

tichca

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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.


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Jbrasil

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

A


tichca

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

raili21

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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