As aggregate output rises, the demand for money ________ and the interest rate ________, so that money demanded equals money supplied and the money market is in equilibrium
A) increases; rises
B) increases; falls
C) decreases; rises
D) decreases; falls
A
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Use the following table to answer the next question. All figures in the table below are in billions of dollars.RGDPAggregate Expenditures (Closed Economy - No International Trade)ExportsImports$400$440$50$60450480506050052050605505605060600600506065064050607006805060If this economy were closed to international trade, then the equilibrium real GDP would be ________ billion and the multiplier would be ________.
A. $600;5 B. $600;4 C. $500;5 D. $500;4
The largest institutional participants in capital markets are
A) pension funds. B) insurance companies. C) consumer finance companies. D) business finance companies.
An outcome that can result from either a price ceiling or a price floor is
a. a surplus in the market. b. a shortage in the market. c. a nonbinding price control. d. long lines of frustrated buyers.
The marginal cost curve intersects the average variable cost curve at the _______ value of the average variable cost curve.
A) maximum B) minimum C) zero D) average