Author Question: If the nominal interest rate is above the equilibrium level ________. A) the supply of real money ... (Read 82 times)

123654777 · **on:** Jun 30, 2018

If the nominal interest rate is above the equilibrium level ________.

A) the supply of real money balances will fall
B) the quantity of real money balances people are holding is too low, and is rising
C) people are selling financial assets in order to increase real money balances
D) all of the above
E) none of the above

Question 2

A static decision is one that

A) is made very slowly.
B) involves planning over one time period.
C) involves planning over exactly two time periods.
D) involves planning over more than one time period.