The money demand curve will shift to the left if real GDP ________ or if the price level ________
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
D
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Banks in the U.S
A) are prevented from holding assets that are "too risky." B) are not prevented from holding assets that are "too risky." C) are encouraged not to hold assets that are "too risky." D) are not encouraged not to hold assets that are "too risky." E) are encouraged to lend to a single private customer.
The ratio of bank's equity to its total assets is called
A) capital requirements. B) leverage. C) assets requirement. D) risk.
Price discrimination requires:
a. a firm to be a competitive firm. b. a firm to be able to segment its customers based on different price elasticities of demand. c. arbitrage. d. that the product can be easily resold.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). b. The GDP Price Index rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). c. The GDP Price Index falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. The GDP Price Index and net nonreserve-related international borrowing/lending remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.