As the interest rate __________, the quantity supplied of money __________ and the quantity demanded of money __________
A) falls; rises; falls
B) rises; remains unchanged; falls
C) falls; remains unchanged; falls
D) rises; rises; rises
E) none of the above
B
You might also like to view...
Explain how expansionary and contractionary monetary policies affect aggregate demand through the exchange rate channel
What will be an ideal response?
Life expectancy at birth for the world rose from 24 years to 26 years between 1000 and 1820, but by 2003, life expectancy had risen to
a. 36 years. b. 44 years. c. 52 years. d. 64 years.
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and reserve-related (central bank) transactions becomes more positive (or less negative). b. The quantity of real loanable funds per time period rises, and reserve-related (central bank) transactions remain the same. c. There is not enough information to determine what happens to these two macroeconomic variables. d. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions remain the same. e. The quantity of real loanable funds per time period and reserve-related (central bank) transactions remain the same.
Which of the following both shift aggregate-demand curve to the right?
a) a decrease in taxes and at a given price level consumers feel more wealthy b) a decrease in taxes and at a given price level consumers feel less wealthy c) an increase in taxes and at a given price level consumers feel less wealthy d) an increase in taxes and at a given price level consumers feel more wealthy