In the money market, if the price level rises, then the demand for money ________ and the equilibrium nominal interest rate ________

Lizzie's budget line is shown in the figure above. If Lizzie's income increases, her budget line

A) shifts rightward and its slope does not change. B) shifts leftward and its slope does not change. C) becomes flatter. D) becomes steeper.

If a bank gets a $100,000 new deposit, chooses to lend out $85,000, and increases its excess reserves by $5,000 at the same time, then the reserve requirement is: a. 10%

b. 15%. c. 20%. d. unable to be determined from the information given.