If the price level falls, the
A) quantity of money demanded decreases.
B) quantity of money demanded increases.
C) demand for money does not change and the quantity of money demanded does not change.
D) demand for money increases.
E) demand for money decreases.
E
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Which of the following statements is TRUE?
A) Real GDP fluctuates around potential GDP. B) Potential GDP fluctuates around real GDP. C) Potential GDP is the same as real GDP. D) When all of the economy's resources are fully employed, the value of production is called real GDP.
The policy of keeping tax rates stable as government spending fluctuates is known as ________
A) Ricardian equivalence B) tax smoothing C) crowding-out D) a tax smoothie
Xavier is on layoff from his assembly-line job in Detroit, and he expects to return in about four weeks. During this time, he is vacationing in Florida. The Bureau of Labor Statistics would classify Xavier as
a. employed. b. unemployed. c. not part of the labor force. d. a temporary retiree.
Producers' total revenue will increase if
A) income increases and the good is an inferior good. B) the price rises and demand is elastic. C) the price rises and demand is inelastic. D) income falls and the good is a normal good.