In the money market, if real GDP increases, then the demand for money ________ and the equilibrium nominal interest rate ________
A) decreases; rises
B) decreases; falls
C) increases; falls
D) increases; rises
E) increases; does not change
D
Economics
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Typically, a bank's largest asset is its
A) holdings of securities. B) loans. C) reserves. D) deposits of its customers.
Economics
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Economics