- Module 28.1: Explain how each of the following would affect the quantity of mone...
- Module 28.2: How will each of the following affect the opportunity cost or benef...
- Module 28.3: What will happen to the money supply and the equilibrium interest r...
- Module 28.4: Which of the following is true regarding short-term and long-term i...
- Module 28.5: The quantity of money demanded rises (that is, there is a movement ...
Solutions for Chapter Module 28: The Money Market
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
the subfield of economics that integrates the insights of psychology
the failure of majority rule to produce transitive preferences for society
the interest rate on the loans that the Fed makes to banks
a situation in which the market price has reached the level at which quantity supplied equals quantity demanded
a person who receives the benefit of a good but avoids paying for it
the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve
the automatic correction by law or contract of a dollar amount for the effects of inflation
the percentage change in the price index from the preceding period
the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior
the total income in the economy that remains after paying for consumption and government purchases
a person’s normal income
the percentage of the population whose family income falls below an absolute level called the poverty line
producer price index
a measure of the cost of a basket of goods and services bought by firms
a tax for which highincome taxpayers pay a larger fraction of their income than do low-income taxpayers
goods that are neither excludable nor rival in consumption
real exchange rate
the rate at which a person can trade the goods and services of one country for the goods and services of another
government policy aimed at protecting people against the risk of adverse events
a situation in which quantity supplied is greater than quantity demanded
the costs that parties incur in the process of agreeing to and following through on a bargain
the price of a good that prevails in the world market for that good