The demand for money is
A. negatively related to nominal GDP and positively related to the level of interest rates available on other financial assets.
B. positively related to nominal gross domestic product (GDP) and to the level of interest rates available on other financial assets.
C. negatively related to nominal GDP and to the level of interest rates available on other financial assets.
D. positively related to nominal GDP and negatively related to the level of interest rates available on other financial assets.
Answer: D
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If consumers decide to be more frugal and save more out of their income, then this will cause
A) a movement to the left along the supply curve for loanable funds. B) a shift in the supply curve for loanable funds to the left. C) a movement to the right along the supply curve for loanable funds. D) a shift in the supply curve for loanable funds to the right.
Appropriate fiscal policy depends on the other major tool of governmental stabilization policy:
a. trade policy. b. tax policy. c. monetary policy. d. labor market policy.
Figure 5-17
In Figure 5-17, which of the marked points would an economist use to help him construct a single demand curve for X?
a.
A and B
b.
C and D
c.
A and C
d.
A and D
You are considering renting a car for the weekend. It costs $200 for the car plus $0.20 per mile (including gas). If you decide to go on a 300 mile voyage what is the total cost of the rental?
A. $60 B. $260 C. $0 D. $200