In the simple liquidity preference model, changes to the money supply will have a smaller effect on interest rates the:
A. steeper, more elastic is the money demand curve.
B. flatter, more elastic is the money demand curve.
C. flatter, less elastic is the money demand curve.
D. steeper, less elastic is the money demand curve.
Answer: B
Economics
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a. the price level. b. the rate of inflation. c. expected future exchange rates. d. the GOP gap.
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When households and businesses interact in product markets money
a. is not exchanged b. is flowing toward businesses c. is flowing toward households d. is not used at all e. is flowing to both businesses and households
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