If the interest rate increases, there is a(n)
A) increase in the demand for money.
B) decrease in the demand for money.
C) increase in the quantity of money demanded.
D) decrease in the quantity of money demanded.
D
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Aggregate supply in the new classical aggregate supply
a. is vertical in the short-run. b. is horizontal in the short-run. c. is upward sloping in the short-run. d. None of the above
The total utility from consuming five muffins is 14, 24, 35, 43, and 50 utils, respectively. Marginal utility begins to diminish after consuming the first muffin
a. True b. False Indicate whether the statement is true or false
Why is fiscal policy less effective in an open economy than in a closed economy?
a. Expansionary fiscal policy raises demand for imports, which reduces aggregate demand.
b. Expansionary fiscal policy raises interest rates, which raises the value of the currency, and reduces aggregate demand.
c. Expansionary fiscal policy raises the value of the currency, which reduces demand for exports.
d. Expansionary fiscal policy has all the above effects.
What is an increasing cost industry?
What will be an ideal response?