At a given point in time, if the demand for money increases:
a. the interest rate will fall
b. there will be a movement downward along the money demand curve.
c. there will be a movement upward along the money demand curve.
d. there will be a rightward shift of the money demand curve.
e. there will be a leftward shift of the money demand curve.
d
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Diminishing returns to capital is a consequence of firms' incentives to use each piece of capital as productively as possible and illustrates the:
A. cost-benefit principle. B. principle of comparative advantage. C. principle of increasing opportunity costs. D. scarcity principle.
An exclusive right to sell a new and useful product, process, substance, or design for a fixed period of time is called a
A) patent. B) barrier to entry. C) monopoly. D) research disincentive.
An increase in demand occurs when
A) we measure price in money price rather than real price. B) we move up the demand curve. C) the demand curve shifts to the right. D) the demand curve shifts to the left.
Dusty Rags, Inc provides janitorial services to retail stores. Dusty had been charging $10 per hour and selling 400 hours of service per week at that rate. When he raised his price to $15 per hour, his customers cut back to 300 weekly hours of service. Which of the following is true?
a. Revenue went from $4,000 per week to $4,500 per week, indicating that the demand curve for his services must have shifted to the right. b. Revenue went from $4,000 per week to $4,500 per week, indicating that the demand for his services must be elastic. c. Revenue went from $4,000 per week to $4,500 per week, indicating that the demand for his services must be inelastic. d. Revenue went from $400 to $300 per week, indicating that demand must be elastic. e. Revenue went from $10 to $15 per week, indicating that demand must be inelastic.