A decrease in the interest rate shifts the money demand curve to the right
a. True
b. False
B
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According to Keynes, an individual's level of saving is primarily determined by
A) the individual's current level of disposable real income. B) the individual's assessment of the future direction of the stock market. C) real Gross Domestic Product (GDP) for the economy. D) the interest rate.
A critical function of the government in facilitating the operation of a market economy is
A) controlling the market prices of food items. B) ensuring an equal distribution of income to all citizens. C) producing goods and services for low-income households. D) setting up and enforcing private property rights.
The money income of households consists of all the following, except:
A. Wages B. Profits C. Interest D. Revenues
Refer to the information provided in Table 3.2 below to answer the question(s) that follow.Table 3.2Price per CheeseburgerQuantity Demanded (Cheeseburgers per Month)Quantity Supplied (Cheeseburgers per Month)$51,500 500 61,200 700 7 900 900 8 6001,100 9 3001,300Refer to Table 3.2. If the price per cheeseburger is $5, the price will
A. decrease because there is an excess demand in the market. B. increase because there is an excess demand in the market. C. decrease because there is an excess supply in the market. D. remain constant because the market is in equilibrium.