In which case would the quantity of money demanded by the public tend to increase by the greatest amount?
A. The interest rate increases and nominal GDP increases
B. The interest rate increases and nominal GDP decreases
C. The interest rate decreases and nominal GDP decreases
D. The interest rate decreases and nominal GDP increases
D. The interest rate decreases and nominal GDP increases
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(Consider This) The tragedy of the commons occurs primarily:
A. where government subsidies are present. B. when incentives to preserve are strongest. C. where property rights are lacking. D. on privately held lands.
If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries. B. completely ineffective on the exchange rate. C. likely to have a much greater impact on the exchange rate than in developed countries. D. likely to have roughly the same impact on the exchange rate as in developed countries.