Figure 3-7 -Refer to Figure 3-7.Assume That the Graphs in This Figure

question 60

Multiple Choice

Figure 3-7

-Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for rice.What happens in this market if buyers expect the price of rice to fall?

• A)Panel (a)
• B)Panel (b)
• C)Panel (c)
• D)Panel (d)

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Definitions:

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.

Small Denomination Time Deposits

Bank deposits that are held for a fixed term with a specified small minimum amount and earn interest over time.

Large Denomination Time Deposits

Time deposits in a bank or financial institution with a large minimum amount of money required, typically over $100,000, and a fixed term.

M2

A measure of the money supply that includes cash, checking deposits, and easily convertible near money, such as savings deposits, small time deposits, and money market mutual funds.