When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis, an increase in the interest rate
A. decreases the quantity demanded of money.
B. does none of these answers.
C. increases the quantity demanded of money.
D. increases the demand for money.
E. decreases the demand for money.
Answer: A. decreases the quantity demanded of money.
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The expenditure components of GDP include all of the following except
A) consumption. B) investment. C) net exports. D) net factor payments.
The present value of $525 received one year from today, assuming an annual rate of return of 5 percent is
a. $551.25 b. $525 c. $500 d. none of the above
Aggregate demand (price) & GDP
What will be an ideal response?
The following provides data for an economy in a certain year. Consumption expenditures$50Imports$40Government purchases of goods and services$20Construction of new homes and apartments$30Sales of existing homes and apartments$40Exports$50Government payments to retirees$10Household purchases of durable goods$20Beginning-of-year inventory$10End-of-year inventory$20Business fixed investment$30 Given the data, how much did households spend on nondurables and services?
A. $70 B. $30 C. $50 D. $20