Author Question: The real balances effect is caused by an inverse relationship between the price level and the real ... (Read 50 times)

nevelica · **on:** Jun 30, 2018

The real balances effect is caused by an inverse relationship between the price level and the real value of financial assets with fixed nominal value.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Other things being equal, an increase in the rate of interest causes a(n):
a. upward movement along the demand for money curve.
b. downward movement along the demand for money curve.
c. rightward shift of the demand for money curve.
d. leftward shift of the demand for money curve.