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Author Question: Assume that the demand for money depends on the interest rate. An increase in the money supply will ... (Read 60 times)

bobthebuilder

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Question 1

If the demand for money depends on the interest rate, then a ________ in the money supply will increase nominal GDP by ________.


◦ 5% increase; more than 5%
◦ 5% increase; less than 5%
◦ 5% decrease; more than 5%
◦ 5% decrease; exactly 5%

Question 2

Assume that the demand for money depends on the interest rate. An increase in the money supply will cause the interest rate to ________, the quantity demanded of money to ________, and the velocity of money to ________.


◦ decrease; decrease; decrease
◦ increase; decrease; increase
◦ decrease; increase; decrease
◦ decrease; increase; increase


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Marked as best answer by bobthebuilder on Apr 19, 2019

lin77x

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bobthebuilder

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Reply 2 on: Apr 19, 2019
:D TYSM


abro1885

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Reply 3 on: Yesterday
Wow, this really help

 

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