If There Are Just Two Assets,bonds and Money,then an Excess

question 56

Multiple Choice

If there are just two assets,bonds and money,then an excess demand for money implies

• A)an excess supply of bonds.
• B)an excess demand for bonds.
• C)equilibrium in the bond market.
• D)an indeterminate equilibrium in the bond market.
• E)nothing about conditions of demand for the other financial asset.

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Definitions:

Cost Of Completion

the estimated total expense required to finish a project, product, or service, often used in budgeting and financial projection.

Normal Profit

The minimum profit necessary for a company to remain competitive in its market, covering its opportunity costs.

Replacement Cost

The cost required to replace an asset with a new one of similar kind and quality at current prices.

Cost Of Completion

The estimated expenses associated with finishing a project, product, or service in its entirety.