A decrease in the interest rate, other things being equal, causes a (an):

a. leftward shift of the demand curve for money.
b. rightward shift of the demand curve for money.
c. downward movement along the demand curve for money.
d. upward movement along the demand curve for money.


c

Economics

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Minimum efficient scale is defined as the level of output at which the short-run average total cost stops decreasing

Indicate whether the statement is true or false

Economics

If the mangers of Golden Bread, a large bakery, acquire a wheat farm to produce the flour for their bread, the managers of Golden Bread are likely to experience all of the following except which one?

A) an increase in managerial diseconomies B) an increase in the complexity of coordination of Golden Bread C) the hold-up problem D) an increase in their required areas of expertise

Economics

If an asset cannot be sold quickly for cash without much loss of value, it is called:

A. illiquid. B. liquid. C. durable. D. fixed.

Economics

The crowding-out effect refers to the tendency of

a. the additional borrowing accompanying larger budget deficits to increase interest rates and reduce private spending. b. higher future taxes accompanying budget deficits to reduce private consumption. c. the inflation rate to rise when the unemployment rate is low. d. increases in private savings to reduce interest rates and, thereby, crowd-out government expenditures.

Economics