With velocity constant, an increase in the money supply multiplied by velocity yields the increase in equilibrium
A) interest rates.
B) money demand.
C) price level.
D) income.
D
You might also like to view...
If the inflation rate is zero, the nominal interest rate is
A) greater than the real interest rate. B) positive and the real interest rate is negative. C) equal to the real interest rate. D) less than the real interest rate. E) equal to the inflation rate.
Any two of these events in questions 1 and 2 occur together? (Draw the diagrams!)
What will be an ideal response?
Country risk analysis involves a consideration of only economic factors
Indicate whether the statement is true or false
Consider the two graphs above. Suppose that financial liberalization enables more businesses to access credit markets. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A