Question

If the demand to hold money fell, the (exchange) value of money would,

a. ​fall​​​​​

b. rise

​If the demand to hold money rose, the purchasing power of money (PPM) would,

a. ​fall

​​​​​b. ​rise

If the purchasing power of money (PPM) fell, the overall price level would,

a. ​fall​​​​​

b. ​rise

If the supply of money fell, the overall price level would,

a. ​fall

b​​​. ​rise

If the supply of money increased at a faster rate, the inflation rate would,

a. fall​​​​​

b. ​rise

If the demand to hold money increased at a slower rate, the inflation rate would,

a. fall​​​​​

b. rise

Answer 1

1) If the demand to hold money fell, the (exchange) value of money would,

rise

because if we don't hold money this means we use money as a speculative motive and where we can gain by dealing in the bonds. or for the safe side, you can deposit it into the bank.

2) If the demand to hold money rose, the purchasing power of money (PPM) would,

​​ ​rise

If the demand for money rises, prices will decrease (PPM increase); if the demand for money falls, prices will increase (PPM decrease).

The purchasing power (PP) of the dollar shows inversely related to the supply of dollars, and directly with the demand

3) If the purchasing power of money (PPM) fell, the overall price level would,

​rise

The higher the price level ( other things remaining equal) the lower the purchasing power of money(PPM). as the price level in an economy refers to a measure of the price of all goods and services in that economy

4) If the supply of money fell, the overall price level would,

​fall

the fall in the money supply will lead to a fall in consumer spending. This fall will shift the aggregate demand (AD)curve to the left. This reduction in money supply fall price levels and real output, as there is less capital available in the economic system.

5) If the supply of money increased at a faster rate, the inflation rate would,

​rise

Rise the money supply faster than the growth in real output (real GDP) will cause inflation. The reason is that there is high money chasing the same number of goods. Therefore, the rise in monetary demand causes firms to put increase prices

6) If the demand to hold money increased at a slower rate, the inflation rate would,

rise

Low inflation Rise demand for money because higher the prices require more money for a given amount of goods and services. But higher inflation also rises the holding costs of money