If the quantity of money demanded is less than the quantity of money supplied, then the interest rate will:
a) change in an uncertain direction
b) rise
c) fall
d) remain constant
Answer: c) fall
Economics
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When the price level increases, aggregate planned expenditure decreases, which leads to
A) a rightward shift of the aggregate demand curve. B) neither a movement along nor a shift of the aggregate demand curve. C) a downward movement along the aggregate demand curve. D) an upward movement along the aggregate demand curve. E) a leftward shift of the aggregate demand curve.
Economics
A country that experiences higher real interest rates than other countries would expect its currency to depreciate
Indicate whether the statement is true or false
Economics