Banks decide to raise the interest rate they pay on checking accounts from 1% to 2%. This action would
A) increase money demand, shifting the LM curve up and to the left.
B) increase money demand, shifting the LM curve down and to the right.
C) decrease money demand, shifting the LM curve up and to the left.
D) decrease money demand, shifting the LM curve down and to the right.
A
You might also like to view...
When duopoly games are repeated and a "tit for tat" strategy is used,
A) the competitive outcome is more likely to be reached than when the game is played once. B) the monopoly outcome is more likely to be reached than when the game is played once. C) both firms begin to incur economic losses. D) one firm goes out of business. E) Because the game is repeated, it is impossible to predict whether the competitive or the monopoly outcome is more likely.
The recession of 2001 began in ________ and ended in ________
A) March; November B) February; December C) April; October D) February; October
If a nation that imports a good imposes a tariff, it will increase
a. the domestic quantity supplied. b. the efficiency of the equilibrium. c. the quantity imported from abroad. d. the domestic quantity demanded.
Regarding people's preferences, behavioral economists observe that these preferences are:
A. Stable and not affected by context B. Fluid and easily influenced by framing C. Readily and accurately predictable D. Consistent from one period to the next