If money supply and money demand both increased:
a. nominal interest rates would increase and investment would increase
b. nominal interest rates would increase and investment would decrease.
c. nominal interest rates would decrease and investment would increase.
d. the change in nominal interest rates and investment would be indeterminate.
d
You might also like to view...
All points below the budget line are
A) inferior to every point on the budget line. B) preferred to every point on the budget line. C) affordable. D) Answers A and C are correct.
The market system's answer to the fundamental question "How will the system accommodate change?" is essentially:
A. "Through government leadership and direction." B. "Through the guiding function of prices and the incentive function of profits." C. "Through training and retraining programs." D. "Through trial and error."