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question 98

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Use the following to answer questions:
Figure: A Money Market Use the following to answer questions: Figure: A Money Market   -(Figure: A Money Market)  Refer to Figure: A Money Market. If the current interest rate is r<sub>1</sub>, the interest rate will _____ because there is a _____ of money in the market. A)  fall; surplus B)  fall; shortage C)  rise; surplus D)  rise; shortage
-(Figure: A Money Market) Refer to Figure: A Money Market. If the current interest rate is r1, the interest rate will _____ because there is a _____ of money in the market.


Definitions:

Trademarks

Distinctive signs or symbols used by a company to identify and distinguish its products or services from those of others.

Property Rights

The legal rights to possess, use, and dispose of assets including real estate, intellectual property, and personal possessions.

Economic System

A particular set of institutional arrangements and a coordinating mechanism for solving the economizing problem; a method of organizing an economy, of which the market system and the command system are the two general types.

Institutional Arrangements

The set of policies, norms, and regulations that shape the behavior of individuals and organizations within a society.

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