The aggregate real money demand schedule L(R,Y) A) slopes ...

[P68T]

The aggregate real money demand schedule L(R,Y)
 
  A) slopes upward because a fall in the interest rate raises the desired real money holdings of each household and firm in the economy.
  B) slopes downward because a fall in the interest rate reduces the desired real money holdings of each household and firm in the economy.
  C) has a zero slope because a fall in the interest rate keeps constant the desired real money holdings of each household and firm in the economy.
  D) slopes downward because a fall in the interest rate raises the desired real money holdings of each household and firm in the economy.
  E) slopes downward because a rise in the interest rate makes consumers less focused on the liquidity of their assets.

Question 2

In the United States over the past fifty years, the fraction of GNP devoted to consumption has fluctuated in a range of about
 
  A) 42 to 49 percent.
  B) 32 to 39 percent.
  C) 22 to 29 percent.
  D) 82 to 89 percent.
  E) 62 to 70 percent.

[jlaineee]

Answer to Question 1

D

Answer to Question 2

E

[P68T]

Gracias!

[kswal303]

Excellent