The money demand curve has aa. negative slope because an increase in the interest rate decreases the quantity of money demanded.b. positive slope because an increase in the interest rate increases the quantity of money demanded.c. negative slope because an increase in the price level decreases the quantity of money demanded.d. positive slope because an increase in the price level increases the quantity of money demanded.31. Contractionary monetary policy on the part of the Fed results ina. an increase in the money supply, an increase in interest rates, and an increase in GDP.b. a decrease in the money supply, an increase in interest rates, and a decrease in GDP.c. an increase in the money supply, a decrease in interest rates, and an increase in GDP.d. a decrease in the money supply, a decrease in interest rates, and a decrease in GDP.

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The money demand curve has a a. negative slope because an increase in the interest rate decreases the quantity of money demanded. b. positive slope because an increase in the interest rate increases the quantity of money demanded. c. negative slope because an increase in the price level decreases the quantity of money demanded. d. positive slope because an increase in the price level increases the quantity of money demanded.

The money demand curve has a a. negative slope because an increase in the interest rate decreases the quantity of money demanded. b. positive slope because an increase in the interest rate increases the quantity of money demanded. c. negative slope because an increase in the price level decreases the quantity of money demanded. d. positive slope because an increase in the price level increases the quantity of money demanded.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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