An increase in the nominal interest rate creates a ________ the money demand curve, and an increase in real GDP creates a ________ the money demand curve
A) movement down along; leftward shift of
B) rightward shift of; movement up along
C) movement up along; rightward shift of
D) leftward shift of; rightward shift of
C
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The following changes in a consumer's economic circumstances result in a steeper budget line with the vertical intercept unchanged. (Denote the good on the horizontal as good 1 and the good on the vertical as good 2.)
A. A k percent decrease in the price of good 2 combined with a k percent decrease in income B. A k percent increase in the price of good 2 combined with a k percent decrease in income C. A k percent decrease in the price of good 2 combined with a k percent increase in income D. A k percent increase in the price of good 2 combined with a k percent increase in income. E. None of the above
Foreign direct investment is:
A. investment that occurs when a firm runs part of its operation abroad or invests in another company abroad. B. investment that occurs when a firm runs its operation domestically, and sells its product abroad. C. when foreign companies buy physical capital from the United States. D. when foreign companies buy and operate physical capital within the United States.
A . What action would a government take to keep its exchange rate from rising if demand for its currency increases? b. Why would a government want to keep its exchange rate from rising?
Government social benefits paid to individuals are
A. known as transfer payments, and are counted as part government consumption and investment. B. known as the output of government, and are typically used to fund personal consumption. C. known as transfer payments, and are typically used to fund personal consumption. D. known as the output of government, and are counted as part government consumption and investment.