Starting from equilibrium in the ISLM framework, a decrease in money demand results in
A) a rise in income and the interest rate.
B) a rise in income and a decline in the interest rate.
C) a decline in income and the interest rate.
D) a decline in income and a rise in the interest rate.
B
You might also like to view...
Claude's Copper Clappers sells clappers for $60 each in a perfectly competitive market. At its present rate of output, Claude's marginal cost is $65, average variable cost is $25, and average total cost is $62 . To improve his profit/loss situation, Claude should
a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price
In Monetarist theory, the role of the government should be to:
a. Control prices. b. Seek to raise productivity by setting up and enforcing fair rules of behavior, encouraging competitive markets, imposing reasonable taxes, and creating stable and predictable political environments. c. Do everything in its power to promote exports. d. All of the above. e. None of the above.
The desire to redistribute income more fairly was one of the major motivations for ______.
a. the Russian Revolution b. the American Revolution c. World War I d. World War II
Which of the following is a result of imposing a rent ceiling?
A) Some consumer surplus is converted to producer surplus. B) There is an increase in the quantity of apartments supplied. C) There is an increase in the quantity of apartments demanded. D) The marginal benefit of the last apartment rented is less than the marginal cost of supplying it.