When the money market is drawn with the value of money on the vertical axis, the price level increases if
a. money demand shifts right and decreases if money supply shifts right.
b. money demand shifts right and decreases if money supply shifts left.
c. money demand shifts left and decreases if money supply shifts right.
d. money demand shifts left and decreases if money supply shifts left.
d
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Discuss how a single bank creates money. What is the limit to which a single bank can add to the money supply? By how much can an entire banking system add to the money supply?
The market for loanable funds is a market in which:
A. savers supply funds to those who want to borrow for their investment spending needs. B. borrowers buy and sell loans. C. savers interact to set the interest rate for loans. D. borrowers supply funds to savers, who want loans for their investment spending needs.
While net domestic product (NDP) is theoretically a better measure of economic activity than gross domestic product (GDP), GDP is used more frequently because:
A. net exports, which are included in NDP but not GDP, are difficult to measure. B. consumption, which is included in NDP but not GDP, is difficult to measure. C. investment, which is included in NDP but not GDP, is difficult to measure. D. depreciation, which is included in NDP but not GDP, is difficult to measure.
Which of the following are quantity-setting oligopoly models?
A. Stackelberg. B. Stackelberg and Cournot. C. Cournot. D. Bertrand.