Which of the following changes will shift the money demand rightward?
a. An increase in the price level
b. A decrease in real GDP
c. A decrease in the nominal interest rate
d. An increase in the nominal interest rate
e. A decrease in the price level
a
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In the long run, a monopoly's
a. economic profits are zero b. economic profits are negative c. economic profits are positive d. demand is perfectly inelastic
The used car market may be inefficient because the purchase of a used car often involves
a. natural selection b. moral hazard c. hidden actions d. open-access resources e. hidden characteristics
If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is:
a. elastic. b. inelastic. c. perfectly inelastic. d. perfectly elastic.
Why are interest rates considered to be the opportunity cost of investments?