Question

TANe 41. What can cause the asset demand for money curve to shift to the left? A). If the interest rate increases. C). If nominal GDP increases E). If the price level increases B). If the interest rate decresases. D). If nominal GDP decreases 42, Which of the following is true regarding the quantity of asset demand for money? A) It varies directly with the level of nominal GDP. B) It varies directly with the rate of interest C) It varies inversely with the level of nominal GDP. D) It varies inversely with the rate of interest E) It is not related to either the rate of interest or the level of nominal GDP 43, If the quantity of money demanded exceeds the money supply, what will the interest rate do? A) Rise, causing people to hold less money. B) Fall, causing people to hold less money C) Rise, causing people to hold more money. D) Fall, causing people to hold more money. E) Remain unchanged, but the demand for money would decrease 44. What is the relationship between the price of government bonds and the rate of return received by bond-holders? A) They are directly related. B) They are inversely related. C) They are unrelated. D) They are independent of Bank of Canada open-market operations E) They are both dependent on the level of investment.

Answer 1

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