If the interest rate increases, there is a(n)
A. increase in the demand for money.
B. increase in the quantity of money demanded.
C. decrease in the demand for money.
D. decrease in the quantity of money demanded.
Answer: D
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Consider the following three statements:
i. You can either stand during a college football game or you can sit. You believe that you will see the game very well if you stand and others sit but that you will not be able to see at all if you sit and others stand. You therefore decide to stand. ii. Your friend tells you that he expects many people to stand at football games. iii. An economist studies photos of many college football games and estimates that 75 percent of all fans stand and 25 percent sit. Which of these statements deals with optimization, which deals with equilibrium, and which deals with empiricism? Explain.
Which of the following is a practical question to implementing Keynesian economic policies to stimulate the economy?
a. Does the government know whether it is better to increase spending or increase taxes? b. Does the government know whether it is better to cut spending or cut taxes? c. Does the government know when there is cyclical unemployment? d. Does the government accurately know what the country’s potential GDP is?
The trend of shorter working days and longer vacations is expected to reversed in most wealthy countries in the future
a. True b. False
A CPA recently has come to expect higher prices for expert tax advice in the near future. We would expect
a. the CPA to supply more expert tax advice now than she was supplying previously.
b. the CPA to supply less expert tax advice now than she was supplying previously.
c. the demand for this CPA's expert tax advice to fall.
d. no change in the CPA's current supply; instead, future supply will be affected.