All other things unchanged, we expect that an increase in interest rates will tend to
A) increase the quantity of money demanded and increase velocity.
B) increase the quantity of money demanded and reduce velocity.
C) reduce the quantity of money demanded and increase velocity.
D) reduce the quantity of money demanded and reduce velocity.
Ans: C) reduce the quantity of money demanded and increase velocity.
You might also like to view...
What special role does the president play in creating fiscal policy?
What will be an ideal response?
In the game in Scenario 13.14,
A) R's dominant strategy is Q = 100; C has none. B) C's dominant strategy is Q = 100; R has none. C) Q = 100 is a dominant strategy for both R and C. D) Q = 100 dominates Q = 150 for both firms. E) the dominant strategy for both players is to choose the same level of output, so long as it is not 150.