An increase in the money supply causes: Group of answer choices interest rates to rise, investment...
An increase in the money supply causes:
Group of answer choices
interest rates to rise, investment spending to rise, and aggregate demand to rise
interest rates to fall, investment spending to fall, and aggregate demand to fall
interest rates to fall, investment spending to rise, and aggregate demand to rise
interest rates to rise, investment spending to fall, and aggregate demand to fall
Homework Answers
Answer : Option C is correct. An increase in money supply causes an interest rate to fall, investment spending to rise as well as aggregate demand has been increased and it means consumer spending has been increased.
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An increase in the money supply causes:
Group of answer choices
interest rates to rise, investment...
Tightening monetary policy causes interest rates to __________ and aggregate demand to __________. Group of answer...
Tightening monetary policy causes interest rates to __________ and aggregate demand to __________. Group of answer choices rise / increase fall / increase rise / decrease fall / decrease
What happens when the price level rises? a. Interest rates rise, so firms increase investment. b. Interest rates...
What happens when the price level rises? a. Interest rates rise, so firms increase investment. b. Interest rates rise, so firms decrease investment. c. Interest rates fall, so firms increase investment. d. Interest rates fall, so firms decrease investment. 44. Which of the following shifts money demand to the left? a. an increase in the price level b. a decrease in the price level c. an increase in the interest rate d. a decrease in the interest rate 45. If the world real interest rate exceeds the Canadian real interest...
An increase in the money supply causes output to rise in the long run. Group of...
An increase in the money supply causes output to rise in the long run. Group of answer choices True False
According to the classical model, an increase in the money supply causes a. output to increase...
According to the classical model, an increase in the money supply causes a. output to increase in the long run. b. the unemployment rate to fall in the long run. c. prices to rise in the long run. d. interest rates to fall in the long run.
Below is some data concerning the money market. Rate of Interest Asset Demand for Money $75...
Below is some data concerning the money market. Rate of Interest Asset Demand for Money $75 5% National income $740 720 700 680 660 6% 65 7% 8% 35. Refer to the information above to answer this question. If the transactions demand for money is 10 percent of national income and the supply of money is $135 then what would be the equilibrium interest rate? A) 4%. B) 5%. C) 6%. D) 7%. E) 8%. 36. Refer to the information...
(1) Other things being equal, which of the following will increase aggregate expenditures? Group of answer...
(1) Other things being equal, which of the following will increase aggregate expenditures? Group of answer choices An increase in domestic prices relative to foreign prices A decrease in the interest rate A decrease in real wealth An increase in income taxes A decrease in government purchases of goods and services (2) If the current unemployment rate is 5 percent and the natural unemployment rate is 6 percent, then the economy is Group of answer choices producing a level of...
What will happen to real GDP given a $30 billion increase in the money supply under...
What will happen to real GDP given a $30 billion increase in the money supply under the following assumptions? Each $5 billion increase in the money supply reduces the rate of interest by 0.50 percentage point. Each 1 percentage point decline in interest rates stimulates $100 billion worth of new investment. The spending multiplier is 2.5. Assume that the aggregate supply curve is so flat that the price level does not rise noticeably when aggregate demand increases.
An increase in aggregate demand would cause foreign investment to rise. unemployment to rise. the price...
An increase in aggregate demand would cause foreign investment to rise. unemployment to rise. the price levels to rise. The aggregate demand represents total spending on ________. a nation’s total budget a nation’s domestic output of goods and services the total supply of domestic and imported goods Which component of aggregate demand would initially be affected by a change in exchange rates? consumption net exports government spending
If the Federal reserve increases the supply of money: A. there will be an increase in...
If the Federal reserve increases the supply of money: A. there will be an increase in government spending. B. there will be a decrease in aggregate demand. C. there will be no effect on aggregate demand. D. there will be a decrease in interest rates. E. there will be an increase in interest rates.
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a chan...
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a change in investment expectations d. both a and c e. both b and c 6. In the Keynesian theory of liquidity demand and the interest rate which of the following occurs during excess supply of money. a. individuals sell bonds, driving interest rates down...
Below is some data concerning the money market. Rate of Interest Asset Demand for Money $75 5% National income $740 720 700 680 660 6% 65 7% 8% 35. Refer to the information above to answer this question. If the transactions demand for money is 10 percent of national income and the supply of money is $135 then what would be the equilibrium interest rate? A) 4%. B) 5%. C) 6%. D) 7%. E) 8%. 36. Refer to the information...
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a change in investment expectations d. both a and c e. both b and c 6. In the Keynesian theory of liquidity demand and the interest rate which of the following occurs during excess supply of money. a. individuals sell bonds, driving interest rates down...
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