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Author Question: If people think interest rates are above their normal levels, they will want to hold more money in ... (Read 52 times)

elizabeth18

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Question 1

Nominal income is equal to


◦ the aggregate money multiplier divided by the money supply.
◦ the real aggregate price level divided by the nominal interest rate.
◦ the aggregate price level multiplied by real aggregate income.
◦ aggregate money demand multiplied by aggregate money supply.

Question 2

If people think interest rates are above their normal levels, they will want to hold more money in savings accounts and less in cash.


◦ true
◦ false


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Marked as best answer by elizabeth18 on Apr 19, 2019

janeli1

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