Since 1970, as a percent of GDP, M1 held has steadily decreased. Which of the following can account for this fact?
A) Real GDP has increased since 1970.
B) The price level has risen since 1970.
C) The nominal interest rate has steadily risen since 1970.
D) The nominal interest rate has steadily fallen since 1970.
E) Credit cards have become more widely available since 1970.
E
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If firms in a competitive industry independently operate to maximize profits, the ________ are eventually equalized across the firms
A) total costs B) marginal costs C) profits D) revenues
Suppose that we are at a point on the money demand schedule where (M/P) = 500. At a constant interest rate, the quantity of money demanded increases when real income ________ so that ________
A) rises, the money demand schedule shifts to the right B) rises, the money demand schedule shifts to the left C) rises, we move downward along the money demand schedule D) falls, the money demand schedule shifts to the left E) falls, we move upward along the money demand schedule