The demand for money curve is shown in the figure above. A movement from point B to point C could be the result of
A) a rise in the real interest rate.
B) an increase in the quantity of money held by banks.
C) a fall in the nominal interest rate.
D) a rise in the real interest rate matched by an equal fall in the nominal interest rate.
E) a decrease in the total benefit from holding money.
C
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Net national savings (S=y-c-g) is realted to the balance on the CA in the following way (the current account identity):
a) national savngs (S)= the balance on the current account (CA) + gross domest product (gdp)- gross national expenditure (GNE) b) national savings (S)= domestic investment (I)+ the balance on the current account (CA) c) National savings (S)= domestic investment (I)- the balance on the current account (CA) d) net national savings (s)+ the balance on the current account (CA)+ domestic investment (I)= gross domestic product
? Along the short-run aggregate supply curve (SRAS), an increase (rightward shift) in the aggregate demand curve will increase:
A. ?both the price level and real GDP. B. real GDP without raising the price level. C. the price level without affecting real GDP. D. ?the price level but reduce real GDP.