Rate of interest is price of money and is determined by supply of money and demand for it. Discuss.
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Rate of interest is price of money and is determined by supply of money and demand...
The interest rate is determined by a. the supply and demand of loanable funds. b. the supply and demand of land. c. the supply and demand of marginal land. d. None of the above is correct.
If the Fed has complete control over the money supply, the interest rate is determined by the B. currency to deposit ratio. C. demand for money. D. government.
In the U.S the supply of money is determined by a. the price level. b. the Treasury and Congressional Budget Office. c. the Federal Reserve System. d. the demand for money.
Figure: Equilibrium in the Money Market Interest rate, Supply of money Demand for money O, O, O, Quantity of money Refer to Figure: Equilibrium in the Money Market. Equilibrium will occur at interest rate and quantity of money Oriei Orier On2: Qo O roi la
18. Long-term interest rates are set by: (a) the supply and demand for money (b) the supply and demand for bonds (c) the supply and demand for both bonds AND money (d) the coupon, or interest payment on a bond. 19. What is fixed and does not change on a bond is: (a) the price of the bond (b) the interest rate on the bond ! (c) the interest payment or coupon on a bond (d) all of the above
At the current interest rate, suppose the supply of money is less than the demand for money. Given this information, we know that Group of answer choices the price of bonds will tend to fall. the price of bonds will tend to fall. production equals demand. the goods market is also in equilibrium. the supply of bonds also equals the demand for bonds. Q2 Suppose a country using the United States' system of calculating official unemployment statistics has 100 million...
50. Ceteris paribus, the total demand for money curve will increase (shift rightward): A. if interest rates increase. B. if nominal GDP decreases. C. if the price level decreases. D. if nominal GDP increases. 51. Ceteris paribus, the total demand for money curve will decrease (shift leftward): A. if interest rates increase. B. if nominal GDP decreases. C. if the price level increases. D. if nominal GDP increases. 52. Which of the following is correct? A. The asset (speculative) demand...
Explain what happens to the interest rate if the money supply increases or decreases and the money demand remains unchanged. Explain what happens to the interest rate if the money demand increases or decreases and the money supply remains unchanged.
Below is some data concerning the money market. Rate of Interest Asset Demand for Money $75 5% National income $740 720 700 680 660 6% 65 7% 8% 35. Refer to the information above to answer this question. If the transactions demand for money is 10 percent of national income and the supply of money is $135 then what would be the equilibrium interest rate? A) 4%. B) 5%. C) 6%. D) 7%. E) 8%. 36. Refer to the information...
1. Which of the following properly describes the interest-rate effect? a. A higher price level leads to higher money demand, higher money demand leads to higher interest rates, and a higher interest rate increases the quantity of goods and services demanded.b. A higher price level leads to higher money demand, higher money demand leads to lower interest rates, and a lower interest rate reduces the quantity of goods and services demanded.c. A lower price level leads to lower money demand, lower...