All Hassan Al Ahm SNC Moodle d. the nominal interest rate During the Christmas shopping season,...
During the Christmas shopping season, the demand for money increases significantly. To offset the increase in money demand, the Fed must ______ the money supply, which will put ______ pressure on nominal interest rates.
TD Al Hassan All Ahmed ( 41 11 42 11 43 11 44 11 45 Moodle Ob. Decrease increase. 46 47 Finish attempt- Assuming expected inflation is zero, real output to (Note this question refers to the results from an increase in the money supply in the short run situation using the AD/AS Models) in the short run, an increase in the nominal money supply will cause Time left 1:08:50 Answer saved Points out of 1.50 P Flag Select one:...
p Ali Hassan Al Ahmed Moodle Points out of 1.50 a. close an expansionary gap Ob. close a recessionary gap O c raise bond prices 41 4243 4445 qwestion 46 47 Finish attempt Queston 23 Not yet The basic aggregate demand and aggregate supply curve model helps explain Time left 1:07:33 Points out of 1.50 Select one O a. the fluctuations in real GDP and the price level. b, Output fluctuations in an individual market. O c only long term...
Question 8 The theory of liquidity preference implies that an increase in the price level shifts the Not yet answered Marked out of 2.00 Flag question Select one: a money demand curve to the right, so the interest rate decreases. b. money demand curve to the left, so the interest rate decreases. 0 C. money demand curve to the right, so the interest rate increases. 0 d. money demand curve to the left, so the interest rate increases. Question 9...
50. Ceteris paribus, the total demand for money curve will increase (shift rightward): A. if interest rates increase. B. if nominal GDP decreases. C. if the price level decreases. D. if nominal GDP increases. 51. Ceteris paribus, the total demand for money curve will decrease (shift leftward): A. if interest rates increase. B. if nominal GDP decreases. C. if the price level increases. D. if nominal GDP increases. 52. Which of the following is correct? A. The asset (speculative) demand...
Question 6 Not yet answered Interest Rate MS Marked out of 2.00 4% b P Flag question 3% d 2% Money Demand Quantity of Money At an interest rate of 4 percent, there is an excess Select one: O a demand for money equal to the distance between points a and b. O b. supply of money equal to the distance between points a and b. O C. supply of money equal to the distance between points a and c....
The exchange rate effect of a price increase is: if the US price level increases, then the Fed increases interest rate in order to stabilize the price level. As a result US dollar appreciates causing US exports to decreases. a. False b. True If the Fed increases money supply, then: a. the value of money decreases. b. the price level increases. c. Both of the above d. none of the above Which of the following will the Aggregate Demand curve...
answer all QUESTION 14 The discount rate is the interest rate that O the Fed charges on loans made to the government. O member banks charge on loans made to the Fed. O the government charges on loans made to the Fed. the Fed charges on loans made to member banks. QUESTION 15 The slope of the aggregate demand curve indicates that, as the price level increases, O the aggregate demand curve shifts rightward. O the real GDP demanded decreases....
answer these will rate after If the Fed increases the discount rate, banks will face a higher cost of borrowing and will pass some of this cost onto customers in terms of higher interest rates. O it will be easier for banks to borrow the money needed to provide a higher volume of commercial loans. O it will then increase the required reserve ratio as well. O it will then decrease the required reserve ratio to offset any possible contractionary...
Complete the sentences. Aggregate demand increases if expected future income, inflation, or profits And aggregate demand increases if fiscal policy government expenditure. SA O A. decrease; increases O B. increase; decreases OC. decrease, decreases OD. increase: increases Aggregate demand increases if fiscal policy transfer payments O A. decreases; increases OB. increases; increases O C. increases; decreases OD. decreases, decreases Aggregate demand increases if monetary policy the quantity of money and interest rates Click to select your answer. Complete the sentences....