As interest rates rise, the quantity of money demanded
A) falls.
B) rises.
C) stays the same.
D) does not react to interest rate changes.
A
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From the Keynesian perspective, when during a recession the quantity supplied is greater than the quantity demanded in the market for some goods and services, there is
A) a decline in potential GDP. B) a decline in potential GDP relative to real GDP. C) a decline in real GDP relative to both nominal GDP and potential GDP. D) a decline in real GDP relative to potential GDP.
Franklin D. Roosevelt's nationwide "Bank Holiday" in March 1933 merely finished the job started by the governors of the states, who were already closing down the banking systems
Indicate whether the statement is true or false
If insurers charge everyone the same premium based on the average cost of insuring the entire group, _____
a. the poor will drop out because the premiums are too high b. the middle class individuals will drop out because they can self-insure c. the healthiest individuals in the market will drop out d. the sickest individuals in the market will drop out
Which of the following often happens when the Fed and fiscal policy makers disagree?
a. The Fed changes its policy to align with the fiscal policy b. The Fed supports the fiscal policy even though it disagrees with this policy. c. The Fed tries to limit the effects of the fiscal policy. d. The Fed waits to see how effective the fiscal policy is before acting.