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What happens when demand is greater than demand?
When demand is greater than supply a supply shortage or scarcity arises and prices increase.
Why might the money supply not expand by the amount predicted by the deposit expansion multiplier?
The reserve requirement could change.
What happens when supply is greater than demand?
The price declines until demand increases.
The law of supply and demand states that the greater the demand for a limited supply of something?
the more it worth
How does the equilibrium price change when both supply and demand shift to the right?
When both supply and demand shift to the right, the equilibrium price will increase if the increase in demand is greater than the increase in supply. Conversely, the equilibrium price will decrease if the increase in supply is greater than the increase in demand.
What happens when demand is greater than demand?
When demand is greater than supply a supply shortage or scarcity arises and prices increase.
Will the money supply increase if people deposit their cash into a demand deposit account?
yes
Why might the money supply not expand by the amount predicted by the deposit expansion multiplier?
The reserve requirement could change.
What describes how Lowering the required ratio increases the money supply?
Makes the deposit multiplier bigger. - Dustin SELU
What happens when supply is greater than demand?
The price declines until demand increases.
What accurately describes how Lowering the required ratio increases the money supply?
Makes the deposit multiplier bigger. - Dustin SELU
The law of supply and demand states that the greater the demand for a limited supply of something?
the more it worth
How does the equilibrium price change when both supply and demand shift to the right?
When both supply and demand shift to the right, the equilibrium price will increase if the increase in demand is greater than the increase in supply. Conversely, the equilibrium price will decrease if the increase in supply is greater than the increase in demand.
What will interest rates do if the demand for money in the money market exceeds the supply?
If the demand for money is greater than the supply, interest rates will go up.Whenever the demand for anything is greater than the available supply, the price goes up.
What happens to prices when demand is greater than suply?
They rise. Supply & demand.
Explain the process of supply and demand and how prices rise and fall?
Prices will fall when the demand is much lower than the supply. When the supply is lower, there is greater demand, therefore, the prices will rise.
How are supply schedule and supply curve related?
Supply schedule and supply curve and related in the sense that there exists an important relationship between supply and demand. The greater the supply curve, the greater the supply schedule.
