In the Money Market,in the Short Run If the Quantity

question 162

Multiple Choice

In the money market,in the short run if the quantity of money exceeds the quantity of money demanded,then to achieve equilibrium the

• A)demand for money increases.
• B)price level rises.
• C)inflation rate increases.
• D)supply of money increases.
• E)nominal interest rate falls.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's financial position at a certain point in time, including assets, liabilities, and shareholders' equity.

Book Value

The net value of a company's assets minus its liabilities, often used to assess the value of a company's shares.

Common Stock

Stocks are financial instruments indicating partial ownership in a firm, granting the holder the right to vote on corporate matters and to earn from the company's earnings via dividends.

Net Income

The total earnings of a company after subtracting all expenses, including taxes, from its total revenues.