When the money market is drawn with the value of money on the vertical axis, a decrease in the price level causes a
a. movement to the right along the money demand curve.
b. movement to the left along the money demand curve.
c. shift to the right of the money supply curve.
d. shift to the left of the money supply curve.
b
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Show graphically and explain why targeting an interest rate is preferable when money demand is unstable and the IS curve is stable
What will be an ideal response?
Not all sellers benefit from a binding price floor
a. True b. False Indicate whether the statement is true or false
The term "double coincidence of wants"
A. means that people are trying to purchase the same thing. B. is a situation where runaway prices are the result of printing too much money. C. describes a barter situation where individuals agree to trade commodities in amounts satisfactory to both parties. D. means that people with the same commodities agree to trade among themselves.
If a country is a net importer of a good, the price of that good will ________ when the economy goes from closed to open for trade.
A. increase B. decrease C. stay the same D. first increase then decrease