Suppose that Y = 4,000 and we are at a point on the money demand schedule where (M/P) = 600. Should Y rise to 4,200, the same quantity of real money balances
A) will not be demanded under any conditions.
B) will be demanded again provided the interest rate does not change.
C) will be demanded again provided the interest rate rises by a certain amount.
D) will be demanded again provided the interest rate falls by a certain amount.
C
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Refer to the scenario above. Tom is likely to get a defective phone if:
A) he pays an amount of $80. B) he pays an amount of $100. C) he pays an amount of $40. D) he pays an amount of $120.
When quantity demanded decreases at every possible price, the demand curve a. shifts to the left
b. shifts to the right. c. there is a movement along the given demand curve. d. none of the above.
A constant-cost industry is one in which:
A. input prices do not change as output changes in the long run. B. supply is highly inelastic. C. the short-run supply curve is horizontal. D. All of these
Assume that the hourly price for the services of tarot card readers has risen and sales of these services have also risen. One can conclude that
A) the law of demand has been violated. B) the number of tarot card readers has increased. C) the demand for tarot card readers has increased. D) tarot card readers are deliberately charging high prices because they provide services for superstitious clients.