Author Question: Of the following high-income countries, which has the highest obesity rate? A) Canada B) Japan ... (Read 121 times)

Pineappleeh · **on:** Jun 29, 2018

Of the following high-income countries, which has the highest obesity rate?

A) Canada B) Japan
C) the United Kingdom D) the United States

Question 2

Show the effects of a change in the nominal interest rate and a change in real GDP using the demand for money curve.

What will be an ideal response?

mammy1697 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

An increase in the nominal interest rate decreases the quantity of real money demanded. The slope of the demand for money curve shows how the quantity of real money demanded depends on the nominal interest rate. As illustrated in Figure 8.1, a decrease in the nominal interest rate results in a movement downward along the demand for money curve.
A change in real GDP changes the demand for money. An increase in real GDP increases the demand for money and shifts the demand for curve for real money rightward from MD0 to MD1, as shown in Figure 8.2.