Author Question: A change in financial technology that reduces the need to hold cash balances ________ the demand for ... (Read 31 times)

berenicecastro · **on:** Jun 29, 2018

A change in financial technology that reduces the need to hold cash balances ________ the demand for money and ________ the equilibrium nominal interest rate.

A) increases; raises
B) decreases; lowers
C) increases; lowers
D) decreases; raises
E) decreases; does not change

Question 2

Classical growth theory predicts that increases in

A) competition increase economic growth.
B) real GDP per person are temporary and not sustainable.
C) resources permanently increase real GDP per person.
D) real GDP per person are permanent and sustainable.
E) resources permanently increase labor productivity.