Suppose the Number of Medical School Graduates Continues to Increase

question 7

Multiple Choice

Suppose the number of medical school graduates continues to increase over the next decade. Which of the following is true?

• A) Physicians' salaries must fall.
• B) Physicians' salaries must rise.
• C) Physicians' salaries will fall only if the demand for medical services falls.
• D) Physicians' salaries will fall if the demand for medical services rises more than the supply of physicians rises.
• E) Physicians' salaries will rise if the demand for medical services rises more than the supply of physicians rises.

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Definitions:

Large Denomination Time Deposits

Savings accounts or certificates of deposit in large amounts, usually over $100,000, that earn interest over a fixed period of time.

M2

An assessment of the total amount of money in circulation, encompassing physical currency, deposits in checking accounts, and liquid assets like savings accounts and money market instruments.

M3

A gauge of monetary supply encompassing M2 as well as sizable time deposits, institutional money market funds, and additional significant liquid assets.

Double Coincidence

A situation in barter economies where two parties each possess an item the other wants, allowing for an exchange without the need for a common unit of value.