Other Things the Same,if the Money Supply Rises by 2

question 70

Multiple Choice

Other things the same,if the money supply rises by 2% and people were expecting it to rise by 5%,then some firms have

• A)higher than desired prices,which increases their sales.
• B)higher than desired prices,which depresses their sales.
• C)lower than desired prices,which increases their sales.
• D)lower than desired prices,which depresses their sales.

Comprehend the process of indirect transfer of funds through banking institutions.

Explain the characteristics and purposes of U.S. Treasury securities.

Recognize the maturity periods of money market instruments.

Understand the role of age as a determinant in savings behavior.

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Definitions:

Borrowed

Referring to money or items obtained on loan, with the obligation to return or repay according to agreed terms.

Mortgage

A loan used to purchase real estate, where the property itself serves as collateral for the loan.

Interest And Principal

Refers to the two components of a loan payment: the interest (a percentage of the borrowed amount charged by the lender for using their money) and the principal (the original amount of the loan itself).

Early Years

An initial stage or period in the life cycle of an entity or project, often characterized by learning, growth, or development challenges.