All else constant, if the GDP in an economy decreases then: demand for money increases. demand for money decreases. the quantity demanded for money increases. the quantity demanded for money decreases.
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All else constant, if the GDP in an economy decreases then:
demand for money increases.demand for money decreases.the quantity demanded for money increases.the quantity demanded for money decreases.
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- When the supply for money increases and the demand for money reduces, there will be * A fall in the level of prices An increase in the rate of interest A fall in the level of demand A decrease in the rate of interestAn increase in nominal GDP will Multiple Choice increase the transactions demand and the total demand for money. decrease the transactions demand and the total demand for money. increase the transactions demand for money but decrease the total demand for money. decrease the transactions demand for money but increase the total demand for money.Which of the following is correct? The demand for money *a. increases as real GDP increases.b. increases when the interest rate increases.c. depends on the quantity of money.d. decreases as the price level increases
- When the supply for money increases and the demand for money reduces, there will be a. A fall in the level of prices b. An increase in the rate of interest c. A fall in the level of demand d. A decrease in the rate of interestWhich of the following will most likely cause a decrease in the quantity of money demanded? Group of answer choices an increase in the interest rate an increase in the price level an increase in nominal aggregate output a decrease in the interest rateIf the central bank increases the supply of money, a new equilibrium is reached by A rightward shift of the demand for money curve. A rightward movement down the demand for money curve. A leftward shift of the demand for money curve. A leftward movement up the demand for money curve.
- Which of the following statements concerning the demand for money is false? The speculative demand for money varies directly with the level of national income. The transactions, precautionary, and speculative demands for money all vary inversely with the level of interest. The transactions demand for money is influenced by both the level of income and the interest rate.Which of the following will cause the demand curve for money to shift to the right? (a) An increase in real Gross Domestic Product (GDP).(b) A decrease in the repo rate.(c) An increase in the quantity of money available.(d) A decrease in the quantity of money available.Which of the following statements is false A. Money is not a comsumption or a capital good B. An increase in the money supply does not confer a general benefit on society C. Economic theory cannot tell us generally which groups benefit and which groups are injured by inflation D. Economic theory cannot tell us the supply of money that is proper for an economy to have
- total demand for money (Click for List) the amount of money people want to hold as a store of value, is the sum of the transactions demand for money and the asset demand for money. M2++ raises the interested rateEquilibrium in the money market occurs when Select one: a. the transactions demand for money equals the precautionary demand for money. b. the quantity of money demanded is more than the quantity of money supplied in the economy. c. the quantity of money demanded equals the quantity of money supplied in the economy. d. the quantity of money demanded is less than the quantity of money supplied in the economy.The economy of Coastland uses silver as its money. If the government discovers a large reserve of silver on their land the A. demand for money increases, the value of money rises, and prices rise. B. supply of money increases, the value of money falls, and prices rise. C. demand for money decreases, the value of money falls, and prices fall. D. supply of money decreases, the value of money rises, and prices fall.