In the money market, if the money supply decreases, the opportunity cost of holding money:
a. decreases and the quantity of money demanded increases

b. decreases and the quantity of money demanded falls.
c. increases and the quantity of money demanded falls.
d. increases but the quantity of money demanded remains unchanged.
e. increases and the quantity of money demanded also increases.


c

Economics

You might also like to view...

In the Keynesian model with both a variable price level and money wage, the aggregate supply function will be

a. upward sloping but flatter than for the variable-price/fixed-wage version of the model. b. upward sloping but steeper than for the variable-wage/fixed-price version of the model. c. vertical. d. horizontal.

Economics

Which of the following would be the best example of an oligopolistic industry?

A) agriculture B) large aircraft manufacturing C) confections D) retail convenience stores

Economics

A radio station is best described as

A) an end user in a transaction-based market. B) a platform in an audience-making market. C) an end user in a matchmaking market. D) a platform in a shared-input market.

Economics

Which of the following lags reduces the effectiveness of active policy?

a. Preliminary lag b. Accounting lag c. Self-correction lag d. Recognition lag e. Execution lag

Economics