When the supply for money increases and the demand for money reduces, there will be a. A fall in the level of prices b. An increase in the rate of interest c. A fall in the level of demand d. A decrease in the rate of interest
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When the supply for money increases and the demand for money reduces, there will be
a. A fall in the level of prices
b. An increase in the rate of interest
c. A fall in the level of demand
d. A decrease in the rate of interest
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- An increase in the money supply creates A. An excess supply of money that is eliminated by rising prices B. An excess supply of money that is eliminated by falling prices C. An excess demand for money that is eliminated by rising prices D. An excess demand for money that is eliminated by falling pricesSuppose there is an increase in money supply, as a result interest rates will Multiple Choice rise and the quantity of money will increases. fall and the quantity of money will remain constant. rise and the quantity of money will decrease. fall and the quantity of money will increases.Value of Money 2 1 I MS1 1 19 U MS2 D Money Demand Quantity of Money money supply is MS1 and the value of money is 1, then there is a shortage in Select one: a. supply of money that is represented by the distance between points A and C. b. demand for money that is represented by the distance between points C and D. c. supply of money that is represented by the distance between points C and D. d. demand for money that is represented by the distance between points A and C. Refer to figure. If the
- When the supply of money increases, what happens to the interest rate? A. the interest rate decreases B. the interest rate increases Thanks z zIn the graph below (the market for money), the Rate of interest price of a dollar 12 10 8 4 2 50 ✔interest rate ✔price of borrowing or lending money O purchasing power S 100 250 Quantity of money demanded & supplied (billions of dollars) 150 is determined by the total demand for money intersecting with the total supply of money. 200 DK The graph shows the demand for money curve. Draw a point to show the interest rate and quantity of money demanded when the interest rate is 5 percent a year. Draw an arrow to show the effect of an increase in the interest rate above 5 percent a year. Label it 1. Draw an arrow to show the effect of a decrease in the interest rate below 5 percent a year. Label it 2. When the interest rate rises, other things remaining the same, the opportunity cost of holding money and A. rises; the demand for money decreases B. falls; the demand for money increases O C. falls; the quantity of money demanded increases OD. rises; the quantity of money demanded decreases 8- 6- 4 2- 0+ Interest rate (percent per year) 2.7 MDO 2.9 3.1 3.3 Real money (trillions of 2007 dollars) >>> Draw only the objects specified in the question. 3.5 € G
- The economy of Coastland uses silver as its money. If the government discovers a large reserve of silver on their land the A. demand for money increases, the value of money rises, and prices rise. B. supply of money increases, the value of money falls, and prices rise. C. demand for money decreases, the value of money falls, and prices fall. D. supply of money decreases, the value of money rises, and prices fall.The table below describes two different demands for money and the supply of money. Answer the following questions based on this table. Instructions: Enter your answers as a whole number. Total Demand for Money Price of Money Money Supply Demand 1 Demand 2 Total Money Demand 1 $400 $300 $150 $ 2 400 250 150 3 400 200 150 400 150 150 5 400 100 150 a. What is the price of money? O Consumer Price Index O Interest rate O Inflation rate O Production rate b. What type of demand for money does Demand 1 represent? O Unit-of-account demand O Asset demand O Total demand O Transaction demand c. What type of demand for money does Demand 2 represent? O Total demand O Unit-of-account demand O Transaction demand O Asset demand d. Complete the "Total Money Demand" column in the above table.The interest rate falls if a. the price level falls or the money supply rises. b. the price level rises or the money supply falls. c. the price level falls or the money supply falls. d. the price level rises or the money supply rises.
- How does an increase in price level affect the money market? a. Money demand increases b. Money supply decreases c. Money demand decreases d. Money supply increases11- 10- Nominal interest rate (percent per year) 94 8- 7- 6- 5- 4- 34 MD 2.8 2.9 3.0 3.1 Quantity of money (trillions of dollars) >>> Draw only the objects specified in the question. 3.2 Q 5 +The figure shows the demand for money curve in Epsilon. The Fed wants the interest rate to be 6 percent a year. If the interest rate is 5 percent a year, do people buy or sell bonds? Question Help Does the price of a bond rise or fall? Does the interest rate rise or fall? Interest rate (percent per year) 7- Draw the supply of money curve if the Fed wants the interest rate to be 6 percent a year. Label it. Draw a point at the equilibrium in the money market. 6- If the interest rate is 5 percent, people will bonds. 5- Bond prices and the interest rate will O A. fall; fall 4- B. rise; fall C. rise; rise MD O D. fall; rise 3+ 2.8 2.9 3.0 3.1 3.2 Real money (trillions of 2005 dollars) >>> Draw only the objects specified in the question. Click the graph, choose a tool in the palette and follow the instructions to create your graph. DII 888 F12 F10 F11 F7 F8 F9 F5 F6 esc F2 F4 F3 F1 & # ! delete %3D 4 5 6 7 8 1 P T Y Q W tab J K F A caps lock M C V shift option command command option fn…