If banks start paying higher interest rates on checking accounts, we would expect, assuming everything else held equal, Group of answer choices a) the demand for money to become more sensitive to changes in the interest rate. this is not correct b) the demand for money to become horizontal. c) the relationship between interest rates and the demand for money to be unaffected. d) the demand for money to become less sensitive to changes in the interest rate. e) a decrease in the supply of money.
If banks start paying higher interest rates on checking accounts, we would expect, assuming everything else held equal, Group of answer choices a) the demand for money to become more sensitive to changes in the interest rate. this is not correct b) the demand for money to become horizontal. c) the relationship between interest rates and the demand for money to be unaffected. d) the demand for money to become less sensitive to changes in the interest rate. e) a decrease in the supply of money.
Chapter16: Monetary Policy
Section: Chapter Questions
Problem 5SQ
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If banks start paying higher interest rates on checking accounts, we would expect, assuming everything else held equal, Group of answer choices
a) the demand for money to become more sensitive to changes in the interest rate. this is not correct
b) the demand for money to become horizontal.
c) the relationship between interest rates and the demand for money to be unaffected.
d) the demand for money to become less sensitive to changes in the interest rate.
e) a decrease in the supply of money.
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