The quantity of money demanded decreases at every combination of GDP and interest rate. If the Fed holds to an unchanged money supply target, the interest rate __________ and GDP __________
A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls
C
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According to the figure shown, if Starbucks expands in the market, then Dunkin Donuts should:
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.
A. also expand their business.
B. not expand.
C. give an ultimatum.
D. None of these statements is true.
The Sunshine Corporation finds its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table. Use this information to answer the following question.OutputTVC1$302503654855110Refer to the above information. The total cost of producing 3 units of output is:
A. $185. B. $105. C. $65. D. $145.
Which of the following exchange rate policies was undertaken by the Chinese government in 1994?
A. A free-floating exchange rate regime was adopted. B. The Chinese yuan was revalued against the U.S. dollar. C. The Chinese yuan was revalued against the euro. D. The Chinese yuan was pegged to the U.S. dollar.
Given the equation of exchange, if V is stable, an increase in M will necessarily increase:
A. The demand for money B. The price level C. Nominal GDP D. Real GDP