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

(Figure: Equilibrium in the Money Market) Refer to Figure: Equilibrium

Question 66
Multiple Choice

(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

Related questions
Q 67
(Figure: Equilibrium in the Money Market) Refer to Figure: Equilibrium in the Money Market. If the interest rate is above equilibrium, there will be an excess _____ money and the interest rate will _____. A) demand for; rise B) supply of; fall C) demand for; fall D) supply of; rise
Q 68
(Figure: Equilibrium in the Money Market) Refer to Figure: Equilibrium in the Money Market. If the rate of interest is below equilibrium, there will be an excess _____ money and the interest rate will _____. A) demand for; rise B) supply of; fall C) demand for; fall D) supply of; rise
Q 69
An increase in the demand for money with no change in supply will lead to _____ in the equilibrium quantity of money and _____ in the equilibrium interest rate. A) no change; a rise B) no change; a fall C) a decrease; a rise D) an increase; a fall
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