The money demand curve will shift to the right if:
A. the nominal interest rate increases.
B. the price level decreases.
C. the price level increases.
D. the nominal interest rate decreases.
Answer: C
You might also like to view...
In 2008, $1.00 U.S. bought 8.24 Chinese Yuan and in 2010, it bought 6.64 Chinese Yuan. Therefore, 1.00 Chinese Yuan was worth _____ U.S. in 2008 and _____ U.S. in 2010
a. $0.12; $0.15 b. $1.20; $1.5 c. $0.82; $0.66 d. $0.15; $1.1
If a U.S. resident purchases a foreign bond, her transactions are included
a. in the U.S. supply of loanable funds and the supply of dollars in the market for foreign-currency exchange. b. in the U.S. supply of loanable funds and the demand for dollars in the market for foreign-currency exchange. c. in the U.S. demand for loanable funds and the supply of dollars in the market for foreign-currency exchange. d. in the U.S. demand for loanable funds and the demand for dollars in the market for foreign-currency exchange.
Innovation:
A. is the first discovery of a product or process, rather than its first successful commercial introduction. B. includes new products but not new production methods. C. is also known as diffusion. D. can either increase or decrease the market share of a large firm, depending on whether it is introduced by the large firm or one of its competitors.
A large country imposes capital controls that prohibit foreign borrowing and lending by domestic residents. The country is currently running a financial account deficit. The imposition of the capital controls will cause
A. net exports to increase. B. desired national saving to fall. C. real domestic interest rates to rise. D. real world interest rates to fall.