Equilibrium in the Money Market Exists When

question 153

Multiple Choice

Equilibrium in the money market exists when

• A) at a given interest rate,excess supply of money is equal to the quantity demanded of money.
• B) at a given interest rate,excess demand for money is equal to the quantity demanded of money.
• C) the supply of money curve intersects the demand for money curve at the prevailing interest rate.
• D) b and c

---

Definitions:

Tariff

A tax imposed on imported goods and services, aimed at making foreign products more expensive and protecting the domestic industry.

Consumer Surplus

The difference between the highest price a consumer is willing to pay for a good or service and the actual price they pay.

World Trade Organization

An international organization that regulates trade between nations, aiming to ensure trade flows as smoothly, predictably, and freely as possible.

Trade Concessions

Agreements or compromises in international trade where one country offers reductions in tariffs or other trade barriers to another country, often to foster better relations or gain economic benefits.