A decrease in the interest rate will cause a(n)
A. decrease in the amount of money held as an asset.
B. increase in the amount of money held as an asset.
C. decrease in the transactions demand for money.
D. increase in the transactions demand for money.
Answer: B
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Using the above figure, of the prices below, which price enables a perfectly competitive firm to earn the maximum economic profit?
A) $4 per unit. B) $10 per unit. C) $12 per unit. D) $16 per unit.
The theory of comparative advantage explains that the gains from international trade result from pursuing comparative advantage and producing at a lower opportunity cost.
Select whether the statement is true or false. A. True B. False
When the price level falls, consumers may feel wealthier and the consumption function will shift upward
a. True b. False Indicate whether the statement is true or false
The target federal funds rate is set by the
A. President of the United States. B. Chairperson of the Federal Reserve Board. C. Secretary of the Treasury. D. Federal Open Market Committee.