In the money market, if the money supply decreases, the opportunity cost of holding money:
a. decreases and the quantity of money demanded increases
b. decreases and the quantity of money demanded falls.
c. increases and the quantity of money demanded falls.
d. increases but the quantity of money demanded remains unchanged.
e. increases and the quantity of money demanded also increases.
c
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Assume it takes the Fed 4 months to understand that a demand shock has occurred in the economy, and another 1 month to adjust policy to the shock
The initial 4 month time period refers to the ________, and the following one month time period refers to the ________. A) impact lag; implementation lag B) recognition lag; implementation lag C) implementation lag; policy lag D) policy lag; impact lag
The demand for labor is:
a. featherbedding demand. b. All of the answers are correct. c. marginal utility demand. d. derived demand.