QUESTION 48 An increase in the money supply causes: O a. interest rates to rise, investment spending to rise, and aggregate demand to rise O b. interest rates to rise, investment spending to fall, and aggregate demand to fall O c. interest rates to fall, investment spending to fall, and aggregate demand to fall d. interest rates to fall, investment spending to rise, and aggregate demand to rise

QUESTION 48 An increase in the money supply causes: O a. interest rates to rise, investment spending to rise, and aggregate demand to rise O b. interest rates to rise, investment spending to fall, and aggregate demand to fall O c. interest rates to fall, investment spending to fall, and aggregate demand to fall d. interest rates to fall, investment spending to rise, and aggregate demand to rise

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter24: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 2PA

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16. When the supply for money increases and the demand for money reduces, there will be * A fall in the level of prices An increase in the rate of interest A fall in the level of demand O A decrease in the rate of interest
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16 A change in-----------leads to a change in-----------as well. a) the money supply indirectly; investment b) the interest rate; government purchases c) the money supply; government purchases d) consumption expenditures; the money supply
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7. As the number of transactions in the economy decreases: the supply of money increases. the supply of money decreases. the demand for money increases. the demand for money decreases
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Which of the following statements is correct? a. A fall in the rate of interest will shift both the asset demand and the total demand curves to the right. b. A fall in real GDP will shift both the transactions demand and the total money demand curve to the right. c. A decline in real GDP will shift the transactions demand curve to the left but leave the total money demand curve unchanged. d. An increase in prices will shift the transactions demand curve for money to the right but leave the total money demand curve unchanged. e. A decrease in prices will shift both the transactions demand and the total money demand curves to the left.
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