A decrease in the price level will shift the money demand curve to the ________, causing the nominal interest rate to ________

A) right; increase
B) right; decrease
C) left; increase
D) left; decrease


D

Economics

You might also like to view...

In the United States' economy

A. there is no need to economize. B. we rarely have to economize. C. only the rich have to economize. D. nearly everyone has to economize.

Economics

According to the quantity theory of money, if an economy produces 100 units of output and has a money supply equal to $500, then if the money supply doubles while velocity remains unchanged, the new price level will

a. fall to $2.50 b. fall to $5.00 c. increase to $5.00 d. increase to $10.00 e. fall to $1.00

Economics

Which is the correct order of importance in terms of revenue collected among the following federal taxes?

a. (1) corporate income taxes (2) value-added taxes (3) excise taxes b. (1) personal income taxes (2) corporate income taxes (3) sales taxes c. (1) payroll taxes (2) personal income taxes (3) federal excise taxes d. (1) personal income taxes (2) payroll taxes (3) corporate income taxes

Economics

Underemployment occurs:

A. when workers do not have jobs. B. when farm workers become more productive. C. when workers are working fewer hours than they desire or when they are working less productively than they are capable. D. in IACs but not in the DVCs.

Economics