If the interest rate increases, the
A. quantity of money demanded will remain unchanged.
B. quantity of money demanded will fall.
C. money demand curve will shift to the left.
D. money demand curve will shift to the right.
Answer: B
You might also like to view...
Which of the following demonstrates the law of supply? a. When leather became more expensive, belt producers decreased their supply of belts
b. When car production technology improved, car producers increased their supply of cars. c. When sweater producers expected sweater prices to rise in the near future, they decreased their current supply of sweaters. d. When lemon prices rose, lemon growers increased their quantity supplied of lemons.
Nominal federal spending is a
a. good indicator of how responsibility the federal government is b. good indicator of the overall economy's performance c. measure of the public's concern for the educational needs of the country d. warning sign that our governmental officials are sometimes out of control e. misleading measure of government's effect, unless it is seen in the context of the country's income
Suppose the Canadian central bank wants to keep the exchange rate of the Canadian dollar with the U.S. dollar constant over time. An increase in the demand for Canadian goods by American residents will lead the Canadian central bank to
A) sell American goods in exchange for Canadian dollars. B) buy more Canadian goods with Canadian dollars. C) increase the demand for Canadian dollars in the foreign exchange market. D) increase the supply of Canadian dollars in the foreign exchange market.
The foreign exchange rate affects agriculture because
A) A weaker dollar makes depresses the export demand for U.S farm commodities. B) A stronger dollar enhances the export demand for U.S. farm commodities. C) A weaker dollar makes imports of inputs used by U.S. farmers. D) None of the above.