If people decide to hold less money, then
a. money demand decreases, there is an excess supply of money, and interest rates rise.
b. money demand decreases, there is an excess supply of money, and interest rates fall.
c. money demand increases, there is an excess demand for money, and interest rates fall.
d. money demand increases, there is an excess demand for money, and interest rates rise.
b
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One type of financial intermediary now rising in relative importance is
A) pension funds. B) banks. C) savings-and-loan associations (S&Ls). D) life insurance companies.
Refer to the above figure. Which of the above graphs represents an unequal income distribution?
A) Panel A B) Panel B C) Panel C D) Panel D
If aggregate supply keeps decreasing while aggregate demand does not change, there will come at time when
a. demand-dull inflation will occur b. cost-push inflation will occur c. demand-push inflation will occur d. cost-pull inflation will occur e. the economy will reach full employment
A group of legislators agree to vote for a package of otherwise unrelated laws that they individually favor. Which term describes this activity?
a. Pork-barrel spending b. Logrolling c. Political correctness d. Lobbying