Author Question: The aggregate real money demand schedule L(R,Y) A) slopes upward because a fall in the interest ... (Read 32 times)

P68T · **on:** Jun 30, 2018

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.