A decrease in the demand for money results in an increase in the interest rate

a. True
b. False
Indicate whether the statement is true or false


False

Economics

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Refer to the scenario above. If the income tax rate for the fourth household is higher than the income tax rate for the second household, it can be inferred that the government follows a ________ income tax system

A) progressive B) regressive C) proportional D) value-added

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Easy monetary policy and tight fiscal policy lead to

A) high real interest rates. B) low real interest rates. C) roughly unchanged real interest rates. D) roughly unchanged real interest rates only when Ricardian equivalence holds; otherwise, low real interest rates.

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Downward-Slope of yield curve (inverted) so expect ____________ interest rates

Fill in the blank(s) with the appropriate word(s).

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A perfectly inelastic demand curve is

A. a horizontal straight line. B. an upward sloping straight line that crosses the vertical axis. C. a vertical straight line. D. a downward sloping straight line that intersects the horizontal axis at the origin.

Economics