If the demand for money decreases, but the Fed keeps the money supply the same:
a. nominal interest rates will rise and aggregate demand will fall.
b. nominal interest rates will rise and aggregate demand will rise.
c. nominal interest rates will fall and aggregate demand will fall.
d. nominal interest rates will fall and aggregate demand will rise.
d
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Fill in the blank: National income accountants who measure GDP try to avoid the ________ problem by only measuring the market value of all final goods and services produced within a country
A) double trouble B) double indemnity C) double counting D) double jeopardy E) double-your-pleasure
A large part of the principal-agent problem stems from the desire of
A) agents to work hard. B) agents to avoid working. C) principals to work hard. D) principals to avoid working.
To determine the optimal method of production for a good or service, a perfectly competitive firm needs to know all of the following except
A. the prices charged by its rivals. B. the prices of inputs. C. the technologies of production that are available to the firm. D. the market price of output.
The free rider problem _____
a. leads to an understatement of demand for the good in question b. is beneficial because it leads to lower public spending c. is functionally equivalent to the transitional gains trap d. is more prevalent in small groups