If nominal interest rates rise, what will happen to demand for money?
a. It will increase
b. It will decrease.
c. Nothing; the economy will move to a new quantity demanded at a new interest rate.
d. It depends on what happens to other determinants of demand for money like prices or income.
c
You might also like to view...
Planned investment spending, a component of aggregate demand, is equal to
A) fixed investment plus actual inventory investment. B) fixed investment plus unplanned inventory investment. C) fixed investment. D) fixed investment plus planned inventory investment.
In the long run in a perfectly competitive market:
A. firms earn zero economic profits. B. firms operate at an efficient scale. C. supply is perfectly elastic when all firms have the same cost structure. D. All of these are true.
A vertical line showing the economy's potential is called the:
A. long-run aggregate supply line. B. short-run aggregate supply line. C. short-run equilibrium output line. D. aggregate demand curve.
What are the effects of migration from developing nations?
a. It entices workers from industrial economies to emigrate to developing nations. b. It improves the technical efficiency of the developing nation's workforce. c. It provides a valuable safety valve for poor nations. d. It prevents brain drain.