Suppose that we are at a point on the money demand schedule where (M/P) = 500. At a constant interest rate, the quantity of money demanded increases when real income ________ so that ________
A) rises, the money demand schedule shifts to the right
B) rises, the money demand schedule shifts to the left
C) rises, we move downward along the money demand schedule
D) falls, the money demand schedule shifts to the left
E) falls, we move upward along the money demand schedule
A
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In which of the following cases would the supply of loanable funds curve shift rightward?
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Between 1990 and 2014, which of these leading industrial countries of the world had the highest average annual growth rate in GDP per capita?
A) Japan B) Canada C) the United States D) Germany
The advantage of a system of fixed exchange rates over one where exchange rates are flexible is that
A. the government gains more control over the economy. B. floating exchange rates impose risks on importers and exporters from unpredictable exchange rates. C. exchange controls become unnecessary. D. fiscal and monetary policy can focus more on domestic conditions.
How are the effects of the financial crisis shown using the Phillips curve diagram?