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  3. Macroeconomics Study Set 48
  4. Quiz 15: Monetary Policy

If the Equilibrium Interest Rate in the Money Market Is

Question 63
Multiple Choice

If the equilibrium interest rate in the money market is 5%, then at an interest rate of 2% sellers of interest-bearing financial assets _____ interest rates to find willing buyers. A) must offer higher B) can offer lower C) can offer 2% D) Sales of financial assets do not depend on the rate offered.

Related questions
Q 64
According to the liquidity preference model, the equilibrium interest rate is determined by the: A) supply of and demand for loanable funds. B) supply of and demand for money. C) level of investment spending and saving. D) International Monetary Fund.
Q 65
If the interest rate is below the equilibrium rate, the: A) quantity supplied of nonmonetary financial assets is greater than the quantity demanded. B) quantity demanded for nonmonetary financial assets is greater than the quantity supplied. C) quantity of money demanded equals the quantity of money supplied. D) quantity of money supplied is greater than the quantity of money demanded.
Q 66
(Figure: Equilibrium in the Money Market) Refer to Figure: Equilibrium in the Money Market. Equilibrium will occur at interest rate _____ and quantity of money _____. A) r2; Q0 B) r0; Q2 C) r1; Q1 D) r1; Q2
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