A decrease in the interest rate will
A. increase the demand for money alone.
B. increase the demand for money and decrease the supply of money.
C. change neither the demand nor the supply of money; rather it will only affect the quantity demanded and quantity supplied.
D. decrease the demand for money and increase the supply of money.
Answer: C
You might also like to view...
Contractionary monetary policy should initially change gross investment by ________.
A. enough to reach full employment B. more than necessary to reach full employment C. an amount determined by the money multiplier D. less than necessary to reach full employment
According to this Application, over the past few years there has been a ________ increase in ________ of automobile parts from outside the United States and Canada
A) large; imports B) large; exports C) small; imports D) small; exports
When Starbucks accepts your $10 bill for two Grande Lattes and one Tall Caramel Macchiato, the $10 bill serves as a
A) medium of exchange. B) store of value. C) standard of value. D) commodity money.
A common source of diseconomies of scale is the
A) diminishing marginal returns to capital. B) diminishing marginal returns to labor. C) diminishing marginal returns to land. D) growing complexity of management and organizational structure.