I. Increase in interest rates causes the supply curve to shift. II. Monetary expansion causes a decrease in equilibrium rate. III. Total wealth causes a movement of interest rate along the supply curve. IV. Improving economic conditions causes the demand curve to shift inward. O Two statements are correct. O All statements are correct. Three statements are correct. Only one statement is correct.

I. Increase in interest rates causes the supply curve to shift. II. Monetary expansion causes a decrease in equilibrium rate. III. Total wealth causes a movement of interest rate along the supply curve. IV. Improving economic conditions causes the demand curve to shift inward. O Two statements are correct. O All statements are correct. Three statements are correct. Only one statement is correct.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter13: Monetary Policy: Conventional And Unconventional

Section: Chapter Questions

Problem 4TY

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